TaxTMI 
TaxTMI 
2011 (2) TMI 1064
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.... them. As a part of technical requirement of manufacturing process, such iron ore pellets are sieved and put to a process in the factory premises, wherein the pellets which are less than 6 mm are segregated. Such segregated iron ore pellets of less than 6 mm are treated as waste and cleared on payment of appropriate duty. The revenue authorities felt that the appellant should have reversed the amount of CENVAT credit taken on such iron ore pellets. After coming to such conclusion they issued a show-cause notice to the appellants. The Commissioner dropped the proceedings initiated by the show-cause notice. Aggrieved by the order, the Revenue preferred an appeal before the learned Commissioner (Appeals).&nb....
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....oduces a copy of the said decision. On specific query from the Bench, the learned Counsel submit that the said decision was produced before the learned Commissioner (Appeals) but the learned Commissioner (Appeals) has not recorded any findings. He would draw our attention to paragraphs of 5, 18 and 19 of the said judgement. 5. The learned SDR on the other hand submits that the issue in the decision which has been produced before the Bench in the appellants own case as cited in 2007 (211) ELT 60 was not an identical issue which is in question. 6. On a specific query from the Bench, both the sides submit that the Revenue has not gone in appeal against the final order of Tribunal. On careful consideration of the s....
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....er:- "18. We have considered the submission. We find that the basic question to be decided is whether the fines (pellets) of size less than 3 mm are to be considered as a waste material arising either during the process of manufacture or that they have become waste in or in relation to the manufacture of final products. We find that what was ordered by the appellants was pellets of specified size and they could not get material which was completely free of fines and further the revenue has not been able to produce any evidence to show-cause notice that pellets of above 6 mm were available in the market without any fines. We also note that by the very nature of goods fines arise due to rubbing/collidi....
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....ied on such fines which certainly have become waste for the appellants in or in relation to the manufacture of final product. Our view finds support, from the Tribunal decision in the case of Hindustan Petroleum (cited supra) where it has been held that 'in or in relation to manufacture of final product' covers entire manufacturing process from initial stage of handling of inputs and the Supreme Court decision in the case of Collector v. Rajasthan State Chemical Works - 1991 (55) ELT 444 (S.C.) wherein it has been held that the process of handling / lifting / pumping / transfer / transportation of raw materials also a process in or in relation to the manufacture, it integrally connected with further operations, which constitute manufa....