TaxTMI 
TaxTMI 
2017 (7) TMI 477
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....ture of sponge iron, iron ore fines and coal fines were generated and the same were sold by the respondent. The respondents availed input service credit on GTA service on iron ore and coal. According to the Revenue, the respondent should have reversed the input service credit on the ground that the iron ore fines and coal fines were not used in the manufacture of final products. The Adjudicating Authority confirmed the demand of Service Tax along with interest and imposed penalty. By the impugned order, the Commissioner(Appeals) set aside the Adjudication order and allowed the appeal of the respondents. Hence, the present appeal before the Tribunal. 2. Heard both sides and perused the appeal records. 3. I find that the issue is no more re....
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....er being brought to the factory, were subjected to the process of screening and process of screening as explained by their ld. Advocate, would definitely a part of the manufacturing process. After the iron ores are subjected to the process of screening, the same could not be called as input as such. Secondly, I find that Rule 3(5) of the Cenvat Credit Rules, 2004, is directed for reversal of Cenvat credit on inputs or capital goods and the same is not applicable to the credit availed on the 'input services'. In this connection, the Hon'ble High Court of Punjab & Haryana in the case of Commr. of Central Ex., Chandigarh-I v. Punjab Steels (cited supra), had observed at Para 10, which reads as under : "10. Be that as it may, however,....
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....ive a particular meaning......." 6. The same view was taken by this Tribunal in the case of Chitrakoot Steel & Power Pvt. Ltd. v. Commr. of Central Excise, Chennai (cites supra). The relevant portion of the Order of the Tribunal in the case of Chitrakoot Steel & Power Pvt. Ltd. is reproduced below : "5. On a careful study of the statutory provisions, it is seen that when the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, Rule 14 of the Cenvat Cred....