9911796707
TMI Blog2025 (4) TMI 1595X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Growth Center, Siltara, Raipur, the respondent herein, is engaged in manufacture of sponge iron, ferro alloys etc. The respondent was also availing the benefit of CENVAT Credit of Duty paid on inputs, input services and capital goods under Cenvat Credit Rules, 2004. During the audit of the records of respondent, it got revealed that the respondent has availed Cenvat Credit of duty paid on the goods / services which were not received in their factory rather were received and used by M/s Sarda Energy and Minerals Ltd., Open Cast Mines, Karwahi, Tamnar, Raigarh. The respondent was found to be separately registered under Central Excise registration as manufacturers of excisable goods and M/s Sarda Energy and Minerals Ltd Open Caste Mines, K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,582/- out of the total demand of Rs.2,50,49,518/- along with the proportionate interest at appropriate rate with penalty of equal amount of demand. The said order was reviewed by Departmental Committee vide Review Order no. I/1267584/2023 dated 30.06.2023. The present appeal has been filed by the department pursuant to the said Review Order. 2. We have heard Shri Bhagwat Dayal, learned Authorized Representative for the department and Shri J.M. Sharma and Ms. Pooja Aggarwal, learned Advocates for the respondent. 3. Learned Authorized Representative (AR) for the department submitted that the Adjudicating authority had grossly erred by ignoring the fact that the respondent had taken Cenvat credit of inputs/capital goods /input services whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en merged with the Hon'ble Tribunal's Final order dated 22.11.2023. Hence the present appeal by the department is not maintainable. 4.1 While submitting on merits, it is mentioned that the open cast coal mines at Karwahi, Tamnar, Raigarh are the captive mines of the respondent only to produce coal for captive use in respondent's plant at Siltara, Raipur. That coal is one of the inputs used in the manufacture of Sponge Iron, Ferro Alloys etc. (final products) and is also used in generation of electricity utilized in the manufacture of final product. The entire quantity of the coal produced in the captive mine was utilized in respondent's factory for generation of electricity used in the manufacture of final product. 4.2 It is further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o not disputed that the Karwahi Mines got registered after the coal was made excisable w.e.f 01.03.2011. This observation coupled with the admitted fact the Karwahi Mines are engaged in manufacture of coal is sufficient to hold that there was no need for Karwahi Mines to take Central Excise Registration prior 01.03.2011. 5.3 We also observe that demand in the present case can be bifurcated into two periods as follows: (a) 03.08.2010 to 28.02.2011 Rs. 2,04,27,936/- (b) 01.03.2011 to 30.09.2011 Rs. 46,21,582/- Total Amount Rs. 2,50,49,518/- 5.4 It is also observed that the demand for the first period i.e. of Rs. 2,04,27,936/- has already been dropped by the original adjudicating authority vide the impugned Order-in-Original/ order u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned Order-in-Original was passed. This perusal is sufficient for us to hold that the present appeal filed by the department has become infructuous and the entire demand as was proposed vide impugned Show Cause Notice including the partial demand as has been confirmed vide the impugned Order-in- Original stands already set aside. 5.6 We further observe that the demand on the same issue, on merits, has also been set aside in appellant's own case vide Final Order of this Tribunal No. 50808/2022 dated 24.08.2022. The adjudicating authority below is held to have ignored the said decision. 6. In the light of the above discussion, the impugned Order-in- Original is therefore set aside. The appeal filed by the department is dismissed, as in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
