2012 (9) TMI 603

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.... are engaged in the manufacture of iron and steel and other excisable goods falling under chapter 72 of CETA, 1985. Proceedings were initiated against them that they have wrongly taken CENVAT Credit amounting to Rs.8,87,487/-(Rupees Eight Lakhs Eighty Seven Thousand Four Hundred and Eighty Seven only) on MS round which the department felt were not eligible as input. Lower adjudicating authority confirmed the demand and imposed equal amount of penalty. Aggrieved by the same the respondents filed appeal before Commissioner(Appeals), who in turn allowed the appeal of the respondents. Aggrieved by the same the Revenue filed this appeal.   4. The contention of the Revenue is that MS rounds is not used directly or indirectly in the manufa....

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....ce hole by carrying oxygen through lancing pipe with the help of MS round both of which strikes the pointed furnace wall & being pursued inside the furnace for making necessary leakage-hole point to bring the hot liquid molten metal out of the furnace to maek the shape/form of metal cake & in course of such collision/striking for making hole, both the lancing pipe as well as MS round get melted/consumed with the hot liquid metal inside the furnace, where evidently no manual operation is possible under such high melting point temperature. This is how the said MS round is used which is technologically necessary for the purpose of completion of the process of manufacture & where the appellant does not have any control or option on this account....