2012 (10) TMI 230

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....dents Per Ms. Archana Wadhwa: Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. I have heard both the sides. 2. As per facts on record, respondent is engaged in the manufacture of sponge iron. They are also availing benefit of input service credit. During the manufacture of sponge iron, fine particles come into existence, which are being ca....

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....y has taken place or not is the one evolved by Hon ble Supreme Court in DCN case 1997(92)ELT315(SC) and reiterated in UOI v. Parle Products Ltd. 1994(74)ELT492(SC) and Ujagar Prints vs. UOI 1988(38)ELT535(SC), according to which the activity or process in order to amount to manufacture must lead to emergence of a new commercial product, different from the one with which the process started. In oth....

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.... of iron are of size, usable in their kiln, can be obtained. In process of handling, sorting, grading, screening etc. of iron lump, pieces of size upto 5 mm are also obtained, which they termed as Iron ore fines. There are not usable in the kiln for the purpose of recovery of sponge iron. Nevertheless what is obtained as iron ore fine are smaller pieces of iron ore. It continues to be the same mat....

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.... be used in the kiln, iron are fines (i.e., iron ore of smaller size not usable in the kiln) came into existence, as inevitable product which appellant are selling as waste. The input service (GTA) is used for procurement of raw material and of during processing of such raw material for the purpose of production desired product, i.e., sponge iron, some inevitable waste came into existence, it cann....