TaxTMI 
TaxTMI 
2015 (6) TMI 690
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....cise Tariff. The Department issued show cause notice dated 20.03.2009 and alleged that 'runner mass' is not an input for manufacture of final products but it is used in the runner path of the blast furnace. Therefore, the item falls under the definition of capital goods and the appellants are not eligible for 100% credit. The adjudicating authority in his order dated 10.06.2009 disallowed the credit in excess of 50% ie., Rs. 9,68,260/- and also imposed equal penalty along with interest. On appeal, the Commissioner (Appeals) rejected the appeal filed by the appellant and upheld the order-in-original. Hence, the present appeal. 2. The Ld. Advocate for the appellant submits that they have rightly availed 100% credit on the input '....
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....edit availed on inputs. The Department has conducted internal audit and CERA also conducted audit and visited the factory from 2004-08 onwards and carried out the audit and accepted the records and not raised any objection on availing credit on runner mass as inputs. Therefore, larger period of limitation cannot be invoked. It is only a question of interpretation, and no suppression can be involved and they have bonafidely availed credit on the belief that it is an input. 3. On the other hand, the Ld. DR on behalf of the Revenue reiterated the findings from the adjudication order as well as from the impugned order. He relied upon para 3, 6.3 and 6.5 of the impugned order and submits that the adjudicating authority has rightly disallowed 50....
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....nner mass is used only in the runner path which is located outside the blast furnace ie., from the mouth of the blast furnace to the laddle. Therefore, it cannot be considered to be a part of the blast furnace. The 'runner mass' is coated on the flow path of the runner path which aids smooth flow of the molten metal. Therefore, it is evident that 'runner mass' is only applied on the runner path and the same cannot be considered as farming part of the blast furnace ie.(capital goods). On a similar issue pertaining to Ramming mass, the Hon'ble Supreme Court in the case of CCE, Bangalore Vs. Escorts Mahle Ltd., (supra) held that 'Ramming mass, fibre glass and filter mesh etc., are used in the manufacture of steel to lin....
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....ess, this Bench has held in C.A. No. 6615/2003 [ Collector of Central Excise v. Steel Authority of India Limited ] that use of such chemicals is essential for the manufacturing process. Specifically, it was observed that : "As discussed by the concerned authority burnt dolomite is used so as to neutralize the acid which is formed at the time of manufacturing steel. This burnt dolomite is, therefore, used in relation to manufacturing of the final product. It has been rightly pointed out that respondent is using burnt dolamite in relation to manufacture of final product so that it may combine with acid which is formed at the time of manufacture of the steel and neutralize the said acid so that it may prevent damage to the furnace. But the u....