TMI Blog2018 (10) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... Adv.) Present for the Respondent: Mr. H.C. Saini, (AR). ORDER PER: RACHNA GUPTA Vide the present order 6 appeals have been disposed off, three were heard on 05.09.2018 for which order detailed below: Present is an Order qua appeal as under against the order no. 198 dated 22.12.2014 passed by the Commissioner as was heard on 05.09.2018. Appeal No. E/52696/2015 Impugned Order-in-Original No. JAI-EXCUS-002-COM-30-14-15-COMMISSIONER dated 22.12.2014 Show Cause Notice Dated 02.08.2013 Period of dispute April 2011 to December 2012 Credit Demand Rs.71,46,418/- Penalty Imposed Rs.35,73,209 Also qua two appeals as below against the order No. 07-08-CRM 09-10 CRM both dated 02.01.2018 as were heard on 07.09.2018 (Order got reserved for three of these Appeals). Appeal No. E/51381/2018 E/50883/2018 Impugned Order-in-Appeal 09-10 (CRM) ST/JDR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said Show Cause Notices have been decided against the appellant vide the respective orders in original, as also detailed in the above charts. Resultantly, the present appeals. 4. We have heard Sh. B.L. Narshiman for the first set of appeals (as was heard on 05.09.2018) and Sh. H. Bajaj for Appeals as were heard on 07.09.2018, for the appellants. Sh. H C Saini Ld. Dr for the former set of appeals and Shri R. Sharma Ld. DR for the later set of appeals, for the department. 5. It is submitted on behalf of the appellants that they have availed the cenvat credit on the cement used for filling the open pits of the mines prior initiating the subsequent extraction of ore in the said mine that too in compliance of the condition of the mining. Accordingly, the said cement used is very much an input and the appellants are entitled to avail the credit. It is further mentioned that the definition of input has been amended in the year 2011. Prior to the amendment the goods as the one in hand were not to be called as input therefore earlier decisions were against the assessee. But post amendment the situation is different. Otherwise also use of cement in filling of pits prior extraction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of the Finance Act; ; ; (F) any goods which have no relationship whatsoever with the manufacture of a final product. 8. The department has relied upon 2k(iv) F clause of the definition that goods which have no relationship whatsoever with the manufacture of a final product are not the input. Therefore, it becomes necessary to understand as to whether the cement herein has any relation with the manufacture of final product or not (extraction of ore in present case). 9. For the purpose the Metalliferous Mines Regulations Act, 1961 (as impressed) are looked into Regulation 107(93) reads as follows: 1[(3) No extraction or splitting or reduction of pillars or blocks of minerals shall be commenced, conducted or carried out except with the prior permission in writing of the Chief Inspector and in accordance with such conditions as he may specify therein. An application for such permission shall be accompanied by an up-to-date plan of the area where the pillars or blocks of mineral are proposed to be extracted or reduced, showing the proposed extent of extraction or reduction, the manner in which such extraction or reduction is proposed to be carried out, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance is placed upon the decision of the Hon ble Tribunal in the case of Prism Cement Ltd. Vs. CCE ST, Jabalpur, 2016 (338) ELT 593 (Tri. Del.) . Thus we opine that the cement used herein is a good which has relation, though indirectly, with the extraction of ore thus it qualifies for audit under Rule 2(k), prevailing during the relevant period. 12. Hon ble Apex Court in the case JK Cottons Spinning and Weaving Mills Co. Ltd. Vs. Sales Tax Officer, Kanpur 1991 (91) ELT 34 has held that : The expression in the manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process is so integrally connected with the ultimate production of goods that but for that process, manufacture or processing of goods would be commercially inexpedient, goods required in that process, would, in our judgment, fall within the expression in the manufacture of goods. In that case Hon ble Apex court even went to the extent of holding that: the use of electrical equipments, like lighting, electrical humidifiers, exhaust fan etc. were also taken to be necessary equipment, to effecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ammonia which is used in the effluent treatment plant is eligible for the said exemption. It is too late in the day to take the view that the treatment of effluents from a plant is not an essential and integral part of the process of manufacture in the plant. The emphasis that has rightly been laid in recent years upon the environment and pollution control requires that all plants which emit effluents should be so equipped as to rid the effluents of dangerous properties. The apparatus used for such treatment of effluents in a plant manufacturing a particular end product is part and parcel of the manufacturing process of that end product. The ammonia used in the treatment of effluents from the urea plant of the appellants has, therefore, to be held to be used in the manufacture of urea and the raw naphtha used in the manufacture of such ammonia to be entitled to the said exemption. 14. Following these earlier decisions and keeping in view the above discussion, we are of the opinion that without filling of the ore pits the appellant was statutorily, not in position to extract the ore, i.e. the final product thus the use of cement was very much in relation to the manufacture wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or renovation of factory or office is allowed. Services used in relation to renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, are specifically provided for in the inclusive part of the definition of input services. 4. Does the expression in or in relation used in Rule 6 override the definition of input under Rule 2(k) for determining the eligibility of Cenvat credit? The definition of input is given in Rule 2(k) and Rule 6 only intends to segregate the credits of inputs used towards dutiable goods and exempted goods. While applying Rule 6, the expression in or in relation must be read harmoniously with the definition of inputs . 15. Resultantly, we hold that the adjudicating authority below has committed an error while denying the credit on cement used by appellant in filling pits for making area fit for ore extraction. The authority as relied upon in the case of Hon ble Rajasthan High Court and as also been impressed upon by the ld. DR are opined to be not applicable to the present case, it being prior to the amendment in the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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