TMI Blog2016 (12) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... and coal fines. These are emerging when iron ore lumps of different sizes are subjected to crushing and thereafter screening in raw material plant - During the course of hearing, attention was drawn to the case of M/s G.R. Sponge and Power Ltd. [2016 (11) TMI 51 - CESTAT NEW DELHI] where it was held that subject goods, ore fines and coal fines are by products emerging during the process of manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty paid on input, capital goods and input services. Noticing that the appellant cleared iron ore fines and coal fines, the Revenue proceeded to demand to recover 10% of the value of the goods cleared, treating iron ore/coal fines as exempted goods and applying provisions of Rule 6(3)(b) /6(3)(i) of Cenvat Credit Rules, 2004. 3. Since for the manufacture of sponge iron the main raw material i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of 8% of the sale value of exempted goods . 4. After hearing both the sides it appears that the applicability of Rule 6(3)(b) /6(3)(i) of CCR to the facts of the present case is in dispute. The said Rules provide that if the exempted goods are cleared by the manufacturer, who did not maintain separate accounts for receipt, consumption and inventory of inputs and input services, then they ..... X X X X Extracts X X X X X X X X Extracts X X X X
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