TMI Blog2018 (4) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... es - Held that: - basic reason to deny the credit fails. Accordingly, the penalty imposed on the appellant on this issue cannot be sustained. Appeal allowed - decided in favor of appellant. - E/50141 of 2018 - 50936/2018 - Dated:- 28-2-2018 - Mr. Justice (Dr.) Satish Chandra, President And Mr. B Ravichandran, Member (Technical) Shri Amit Jain, Advocate, for the Appellants Shri R K Mishra, DR, for the Respondent Per: B Ravichandaran: The appellants are aggrieved by the order dated 21.9. 2017 of Commissioner (Appeals), Raipur. The appellants are engaged in the manufacture of various products of iron and steel. They have availed credit on various inputs and input services in terms of Cenvat Credit Rules 2004. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ministry of Environment and Forest. While setting up the power generation plant, clearance has to be obtained from the said Ministry. The Ministry categorically insisted that fly ash arising during the course of power generation should be disposed of in the manner prescribed. As the disposal in the manner prescribed is to be followed, non - adherence of the same will apart from penal consequences will result in cancellation of permission of generation of electricity. He submitted that in view of the statutory regulation and also in view of the compelling nature of the requirement of removal of fly ash for continuation of generation of power, same is essential for manufacture of final excisable goods namely, iron and steel goods. The essent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terated the findings of the Commissioner. 7. We have heard Shri Amit Jain and Shri R K Mishra, learned representatives of both the sides and gone through the appeal record. 8. On the first issue, we note that the impugned order (para 39.3.7) clearly records that appellant has undertaken various activities of removal of disposal of fly ash in terms of mandate of Ministry of Environment and Forest. He also recorded that while process is to fulfil action being environment friendly, however, he proceeded to record removal of fly ash to protect environment is not on account of manufacture of finished goods. We note that removal and disposal of fly ash in a manner prescribed by the Government is a mandate requirement for continued productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice is also not disputed. In this regard, the appellants are availing the credit not on supplementary invoices and there is no reason to deny the credit at all. 12. Learned Counsel submitted that while the fact that credit was taken in normal course, the denial is on the ground that input services are not eligible as the same relates to fly ash handling. Since we have already held that input service relates to removal and disposal of fly ash are eligible for credit, this amount which is for said service will also become eligible. 13. In view of the above discussions and analysis denial of benefit of credit of input services used for removal and disposal of fly ash is not sustainable. Penalty on the dispute of supplementary invoice is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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