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TMI Blog2008 (7) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Cess Penalty under Rule 15 (3) of CCR, 2004 Penalty under Section 76 of the Finance Act, 1994 E/st/487/2007 in E/752/2007 Rs. 36,45,705/- Rs. 35,78,296/- & Rs. 70,163/- (Ed. Cess) Rs. 10,000/- Rs. 200/- for every day failure or 2% on such tax E/st/495/2007 in E/760/2007 Rs. 91,78,964/- Rs. 30,87,218/- & Rs. 61,744/- (Ed. Cess) Rs. 10,000/- Rs. 200/- per day upto 17-4-2006 & Rs. 200/- per day or 2% PM of such tax, whichever is higher E/st/494/2007 in E/759/2007 Rs. 6,17,709/- Rs. 6,05,597/- & Rs. 12,112/- (Ed. Cess) Rs. 10,000/- Rs. 200/- per day or 2% PM which ever higher 2. The appellants were registered under the Finance Act for paying Service Tax under the category of "Goods Transport Agency (GTA)" in terms of prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious graces and concentrates and they had set-up 100% EOU for manufacture and export of various grades of calibrated iron ore and iron ore concentrates. Their submission was that the production of various grades of calibrated iron ore or lumps to be treated as manufacture. They pointed out that Rule 3(1) of Cenvat Credit Rules states that a manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit on the activity undertaken by then amounts to "manufacture" or "production" of excisable goods and hence whatever Service Tax they paid was eligible for taking credit in terms of the said Rules. The Commissioner noted that they were not providing any service but the inputs from the mines was being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for the subsequent payment. He also relied on several Tribunal rulings and pointed out that there is no irregularity in the availment of the Cenvat credit. 5. The learned SDR submitted that the cited judgment is not at all applicable to the facts of the case. She pointed out that Service tax so being paid to GTA service for removal of iron ore from the mines to the port cannot be taken as credit for subsequent period and as such an action would make the revenue neutral and no Service Tax would be collected for the transportation of ores from the factory to the port area under the category of GTA. She further submits that there is no legal fiction also presumes such a proposition put forth by the appellants. He submits that appellants di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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