2013 (11) TMI 1384

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....nge iron are cleared as iron ore fines without payment of duty. In the course of handling coal, which is brought to the factory coal dust arises, which is also cleared without payment of duty. The department was of the view that both iron ore fines and coal fines are excisable goods manufactured in the factory and since the same are fully exempt from duty, the same are exempted goods within the meaning of this term as defined in Rule 2 (d)of the Cenvat Credit Rules, 2004. The department, alleging that since common inputs or input services had been availed in the manufacture of dutiable final products (sponge iron) and exempted final products (iron ore fines and coal fines) and since separate account and inventory of the inputs and input ser....

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....uty, the same have to be considered as exempted final products and since the provisions of Rule 6(2) of Cenvat Credit Rules have not been complied with, inasmuch as separate account and inventory of inputs and input services used for the manufacture of exempted and dutiable final products have not been maintained, the provisions of Rule 6 (3) would be attracted. He, therefore, pleaded that the impugned orders are not correct. 3. Shri Manish Sharma, ld. Counsel for the respondent, defended the impugned orders reiterating the findings of the Commissioner (Appeals). 4. I have considered the submissions from both the sides and perused the records. 5. Rule 6(2) and 6(3) of Cenvat Credit Rules are attracted when any common inputs and/or input ....