2017 (1) TMI 604

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.... item Dolochar captively consumed by the appellant for production of electricity. 2. The appellant has been represented by the Ld. Advocate, Sh.V.K Puri and Revenue has been represented Ld. AR, Sh. R.K. Manjhi. 3. The ld. Advocate based on the appeal memorandum and written submissions inter alia submit as under: i. The appellant uses iron, coal, dolomite, mobil, greases, etc., as raw materials for the manufacture of Sponge Iron. The appellant avails cenvat credit of service tax paid on various input services. ii. During the course of manufacture of Sponge Iron, some quantity of unburnt/partially burnt coal emerges, known as Char. This Char, when reacts with dolomite results in Dolochar. iii. Part of Char/Dolochar is used by the appe....

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....r/Dolochar. ii. If Char/Dolochar are not manufactured goods, the change from 10.05.2008 in the amended definition of excisable goods(given below) would still not render the goods as being subject to duty of Excise. Thus even from 10.05.2008 onwards, Char/Dolochar are still not excisable goods. iii. As stated above, Char/Dolochar are not exempted goods. When part of these goods is removed without paying any excise duty to the Power Plant, these are not removed under any exemption. Not being exempted goods, the removal of Char/Dolochar to their Power Plant is not hit by the provisions of Rule 6(1) of the Cenvat Credit Rules, 2004. In view of this, the demands under the impugned Order are not sustainable. 4. The Ld. AR has reiterated the ....