2013 (11) TMI 1417

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....nt of duty. Similarly in course of crushing of iron ore lumps and screening of crushed ore to get the iron ore lump of the desired size, iron ore fines arise which cannot be used in manufacture of sponge iron and are cleared without payment of duty The respondent have taken Cenvat Credit in respect of GTA Service for transportation inputs and also in respect of lubricants used in the machinery. The Department was of the view that since Cenvat Credit has been availed in respect of common input and input service Used in the manufacture of exempted goods iron ore fines and coal fines and dutiable goods (Sponge Iron) and since separate account and inventory of inputs & input service meant for dutiable and exempted final products has not been....

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..... 2. Heard both the sides. 3. Sh. A.K.Jain, learned Jt. CDR assailed the impugned order by reiterating the grounds of appeal in the Revenue's appeal and emphasized that coal fines arising in course of handling of coal and iron ore fines arising, in course of processing of the iron ore lumps in the respondent's plant are manufactured products attracting excise duty which is fully exempted, and hence both the products are exempted goods within the meaning of this term, as defined in Rule 2(d) of the Cenvat Credit Rules 2004, that since the respondents have availed GTA Service in respect of which the Cenvat Credit had been taken and have also availed Cenvat Credit in respect of lubricants, and since the Provision of Rule 6(2) of the Cenv....

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....Non maintenance of separate account and inventory of inputs and/or input services meant for manufacture of dutiable and exempted final products. 5.1 In this case the iron ore fines arise as inevitable and unavoidable waste in course of processing of iron ore lumps and similarly the coal fines arise as inevitable and unavoidable waste in course of handling of coal in the respondent's plant. The compliance with the provisions of Rule 6(2) regarding maintenance of separate account and inventory of cenvated inputs and input services meant for dutiable final products and exempted final products in such a situation is impossible and it is absurd to expect to comply with this provision in such a case. The provisions of Rule 6(2) read with 6(3) ....