9911796707
TMI Blog2013 (6) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 11AC of the Central Excise Act. 2. The applicant is engaged in the manufacture of sale and aluminium and aluminium products falling under Chapter Heading 76 of the first Schedule to the Central Excise Tariff Act. The applicant is also availing Cenvat credit facility in respect of service tax paid on various input services received in different mines of bauxite, located at Lohardaga, Jharkhand and another at Samri Chhatisgarh. M/s Hindalco Industries Ltd. is the name of a company having several units all over India manufacturing and processing different dutiable and exempted goods. All the units have one single PAN number, common Board of Directors and a Head office. All the units are registered separately in the Central Excise Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D as required in Col. 5(d) of their ST-I application for registration. On the basis of investigation a Show Cause Notice was issued to the applicant denying Cenvat credit availed by them in respect of input services utilised at Lohardaga and Samri road etc. and also taking a view that ISD invoices issued by mines located at different places are not valid documents for taking credit against the input services by the applicant. Show Cause Notice was confirmed by the Commissioner of Central Excise, Allahabad vide impugned order under which a demand of Rs.18,02,65,970/- had been confirmed along with interest and equal amount of penalty under Rule 15 of the Cenvat Credit Rules read with the provisions of Section 11AC of the Central Excise Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 11A of Central Excise Act. He submits that substantial portion of the demand raised in the impugned order is time-barred. He also relied upon the decision of Tribunal in the case of M/s Hindalco Vs. CCE, Allahabad Order No. A/561/2011-Ex.(BR) dated 7th May 2012 in support of his contention that the mines are captive mines of M/s Hindalco Industries and submits that the applicant has a strong case for waiver of pre-deposit for hearing the appeal. 5. Ld. D.R. appearing for the Revenue submits that M/s Hindalco Industries is having several units all over the India and the applicant M/s Hindalco Industries, Renukoot is one of the manufacturing unit of the main company. He submits that the mines located under Lohardaga and Samari are locate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he record, we find that M/s Hindalco Industries Ltd. Chottamuri, Ranchi have also received the bauxite ore from these mines during the period from 2005-2006 to 2010-2011 (up to September) as per details given below :- YEAR Qty. (in Mt.) 2005-06 374323.00 2006-07 397533.158 2007-08 351458.988 2008-09 591759.925 2009-10 735526.190 2010-11 (up to Sept.) 444766.110 Therefore the contention of the party that entire bauxite produced in the mines is received in applicant's unit at Renukoot is not entirely correct and in such a scenario when the bauxite ore is supplied to other units other than one based in Renukoot it is difficult to accept that these mines are exclusive captive mines of the applicant. Decisions cited by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... output service, subject to the following condition, namely :- (a) the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon: or (b) credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed." 9. On going through the above Rule (7), we find that input service distributor may distribute the Cenvat credit to its manufacturing units or units providing output service, subject to the condition (a) and (b) of the rule. From the wording of the rule, we find that input service distributor has to be o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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