2016 (11) TMI 507

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....alling under Chapter Heading No.84.07, 84.08 and 84.09 and availed CENVAT Credit C.R. sheets cut to required sizes procured from M/s.Tata Ryerson Ltd., Jamshedpur (hereinafter referred to as the supplier) and utilized the said credit towards payment of Central Excise duty on their final products. The supplier subjected the duty paid H.R./C.R. coils/sheets received from M/s.TISCO, Jamshedpur to cutting and slitting. They availed CENVAT Credit on H.R./C.R. coils/sheets and paid duty on the resultant sheets in required sizes. 1.1 The Revenue alleged that on verification of the records maintained by the Respondent, it was noticed that cutting/slitting of H.R./C.R. coils/sheets into C.R. sheets of required sizes does not amount to manufacture....

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..../slitting of the H.R./C.R. Coils into H.R./C.R. Sheets of lesser width, they delivered the pieces of H.R./C.R. Sheets to the assessee at Hindmotor on payment of duty, at the instances of M/s.TISCO, Jamshedpur. In terms of Boards Circular No.811/8/2005-CX dated 02.03.2005, the Commissioner, Central Excise, Jamshedpur raised a show cause notice vide C.No.V(12)02/CEP/JSR2006/1732 dt.23.2.06 on M/s.Tata Ryerson Ltd., Jamshedpur, to initiate proceedings to disallow Cenvat Credit under the provisions Rule 6(1) of Cenvat Credit Rules, 1944. The Commissioner, Central Excise, Jamshedpur finally decided the case against M/s.Tata Ryerson Ltd., Jamshedpur, as no duty is attracted on final products processed by them. On being aggrieved with the....

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....cannot be upheld. Inasmuch as the issue is covered by the above decision of the Tribunal as also by the Hon'ble Supreme Court, we set aside impugned order and allow the appeals with consequential relief to the appellant. The above decision of the Hon'ble Central Excise & Service Tax Appellate Tribunal, Kolkata, in the Central Excise Appeal No.218 and 219/2006, filed by M/s.Tata Ryerson Ltd., Jamshedpur, was pronounced whereunder the demand raised under show cause notice vide C.No.V(12)02/CEP/JSR/2006/1732 dt.23.2.06 and confirmed by the Commissioner, Central Excise, Jamshedpur was set aside and renders the instant show cause taken up for adjudication as redundant. I reply upon the above decisions and give the order as unde....

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....clusion that in fact there was no loss of revenue. It accepted the appeal by recording the following reasons : "Reasons given by the appellants for the alleged inflation of the value of the intermediate goods are logical. What was required of the Commissioner was to examine the quantum of the loading of the assessable value by the Modvat credit on the earlier inputs. That exercise has nowhere been done. If the department was of the opinion that the value of the final product was depressed, then they could have charged the Jalgaon unit with under-invoicing of their product. That has also not been done. The valuation as given by the Sinnar unit was duly approved by the department and the payment of duty was also duly accepted. We fin....