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TMI Blog2023 (10) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... tate of West Bengal. 'Coal' was made subject to levy of Clean Energy Cess for the first time w.e.f. 01.07.2010 under the provisions of the Finance Act, 2010. Further, Central Excise Duty on coal become payable for the first time w.e.f. 01.03.2011 vide the Finance Act, 2011, with a levy at the rate of 5% in place of 'NIL' rate of duty. 2. For the purpose of payment of Central Excise Duty on coal, a concessional rate of 1% was prescribed provided that the benefit of CENVAT credit under the provisions of CENVAT Credit Rules, 2004 (CCR) is not availed. Since, the payment of duty at the concessional rate of 1% was optional, the Appellant opted to make the payment of Central Excise Duty at the normal tariff rate of 5% with CENVAT credit facility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord. Further, the CENVAT credit availed by the Appellant has not been denied under the provisions of CCR. Having allowed the CENVAT credit facility, which is available on inputs used in the manufacture of final product, the Authorities have in-principle accepted that the "activity of coal mining amounts to manufacture". It cannot be the case of the Department that the Coal mining activity would amount to 'manufacture' for the purpose of availment of CENVAT credit under CCR, whereas, the very same coal mining activity would not amount to 'manufacture' for the purpose of consideration of exemption under Notification No. 67/95 . 6. The Appellant further submitted that the Ld. Commissioner, has wrongly applied the decision of the Hon'ble Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax Appeal No. 75388 of 2014,) 8. The instant issue also stands clarified by the Tax Research Unit in F. No.332/8/2012-TRUdated 06.03.2012, holding that the coal companies would be legally entitled to avail CENVAT credit under the CCR by paying Excise Duty at normal tariff rate of 5%. In the said clarifications, after duly considering the decision of the Hon'ble Supreme Court in the case of Tata Iron and Steel Company Limited (Supra), it has been clarified that the said decision pertained to the levy under Coal Mines Act and not the Central Excise Act, 1944. Accordingly, it has been clarified therein that there would not be any requirement to make any amendment in the definition of manufacture under Section 2(f) of the Central Excise Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of the Notification No. 67/1995 to the Appellant on the ground that the said exemption benefit would be available only when the coal is 'manufactured. Since coal is 'produced' and not 'manufactured' in this case, Cenvat credit is not eligible to the Appellant. It has also been contended that by producing coal, there is no emergence of a new product so as to consider the coal mining activity undertaken by the appellant to be amounting to 'manufacture'. 14. We find the grounds of denial of Cenvat credit very strange. The Appellant has opted for payment of Central Excise Duty at the normal tariff rate of 5% with CENVAT credit facility", which is not in dispute. Having allowed the CENVAT credit facility, which is available on inputs u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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