TaxTMI 
TaxTMI 
2012 (8) TMI 822
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.... the applicant narrating the facts, has submitted that the applicant are engaged in the manufacture of finished goods namely, hot metal, pig iron, coal based directly reduced iron (sponge iron), non-alloy steel and alloy steel, billets and iron rods falling under Chapter 72 of the Central Excise Tariff Act at their factory at Gamharia for manufacture of the said finished goods. In the manufacture of finished goods, coal and iron ore are used as inputs. Coal is used in the captive power plant at the factory. 3. The learned Advocate contended that they were allotted coal blocks at Kathuria and leased by the Government of Jharkhand. This is a captive mine and all the coal mined from these coal blocks are transported to their factory at Gamhar....
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.... The learned Advocate has submitted that the said mines are 100% captive mines and allotted to the applicant by the respective Governments. These are not separate entities and profit-making units, but a part and parcel of the applicant-company. He has, further, submitted that whatever services received by these mines are in the nature of input services and as these services used in the production of coal and iron ore, as the case may be, are ultimately used in the manufacture of their final products, hence, eligible to Cenvat credit. 6. Further, he has submitted that there is no restriction in the definition of 'input services' that the services ought to be used in the factory of manufacture. This meaning of input service is also clear fro....
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....r'. The input service invoices relating to Kathuria mines, were issued indicating the address at Kathuria mines and accordingly, Cenvat credit on such invoices cannot be availed at their Gamharia factory. 9. Heard both sides and perused the records. We find that undisputedly, the mines are 100% captive mines which are allotted to the applicant for production of coal and iron ore. The coal extracted/produced are ultimately used in or in relation to the manufacture of finished products at their factory at Gamharia. Similarly, the iron ores extracted/produced at their mines at Bokna are used in the manufacture of finished products. It is also not in dispute that the applicant availed proportionate credit of the Service Tax to the extent the i....