TaxTMI 
TaxTMI 
2018 (10) TMI 1466
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....-CRM & 09-10 CRM both dated 02.01.2018 as were heard on 07.09.2018 (Order got reserved for three of these Appeals). Appeal No. E/51381/2018 E/50883/2018 Impugned Order-in-Appeal 09-10 (CRM) ST/JDR/2017-18 dated 02.01.2018 Order-in-Original 06-08/CE/UDR/2016-Addl. Comm dated 07.01.2016 Show Cause Notice Dated 22.07.2014 Dated 24.098.2015 Period of Dispute July 2013 to March 2014 October 2014 to August 2015 Credit Demand Rs.33,96,228/- Rs.49,46,864/- Penalty Demand Rs.3,30,000/- Rs.4,90,000/- And also qua remaining three Appeals as below : Appeal No. E/51294/2018 E/51136/2018 E/51146/2018 Impugned Order-in-Appeal 70-72-AG-CE-JDR-2018 Order-in-Original 06-08/CE/UDR/2016-Addl. Comm dated 07.01.2016 73/CE/UDR/2016-17 dated 30.11.2016 79/CE/UDR/2016 dated 10.01.2017 Show Cause Notice Dated 24.04.2015 Dated 15.10.2015 Dated 30.09.2016 Period of Dispute April 2014 to September 2014 October 2014 to August 2015 September 2016 to June 2016 Credit Demand Rs.19,71,899/- Rs.1,05,68,940/- Rs.57,32,310/- Penalty Demand Rs.1,90,000/- Rs.10,00,000/- Rs.5,70,000/- ....
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....rder accordingly is prayed to be set aside appeal is prayed to be allowed. 6. While rebutting these arguments and justifying the orders under challenge ld. DR has impressed upon the decision of Hon'ble High Court of Rajasthan in the case of appellant themselves (though the appeal was filed by the Union of India) wherein it was held that cement used for construction repair or maintenance of mines is not an eligible input to avail the cenvat credit. Para 24 of the order under challenge is also impressed upon. The appeal accordingly is prayed to be dismissed. 7. After hearing both the parties and perusing the record we hold as follows: The moot question to be decided for these Appeals is as to whether the cement used by the appellant who were asked to extract ore from the proposed ore block but only after conducting stopping operations of the said ore blocks, can be called as input. For the purpose the definition of input should be relevant: Section 2 (k) [(k) "input" means - (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the v....
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....plitting and reduction of pillars or blocks of mineral shall be commenced, conducted or carried out in such a manner as to prevent, as far as possible, the extension of a collapse in the stoped-out area over-riding the pillars or blocks of minerals that have not been extracted]. 10. The said provisions originates from the Mines Act, 1952. Perusal of record shows that there has been a permission under the aforesaid regulation in favour of the appellant vide which the appellant was permitted to conduct stopping operations of the ore block by making use of impugned cement and the method of extraction shall be by VRM Stoping method post filled by mill failing mixed with cement in the ratio as prescribed therein. The permission specifically recites that extraction of ore from the proposed area shall be commenced only after proper settlement and consolidation of the fill of stopped out ore block, immediately below the proposed ore block. Perusal of these clauses in the permission by the mines department in favour of the appellant makes it abundantly clear that filling of the open ore pits with cement was a mandatory pre-requisite for the appellant to extract ore. As already observed a....
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....oduction of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods." 13. This Tribunal also in final order 56900/2017 dated 28.09.2017 has relied upon the decision of Fertilizer Cooperation Ltd. Vs. CCE Ahmadabad 1996 (86) ELT 177(SC) has quoted as follows: "2. The primary contention of the revenue in this case is that the items are not used in or in relation to the manufacture of final product. The first of the items is Hydrochloric Acid (HCL). According to the department, HCL was used to treat the effluent which was a wastage obtained and hence it was not used in or in relation to the manufacturing process. This issue is no longer res integra as it has already been considered by the Supreme Court in the case of Indian Farmers Fertiliser Co-operative Ltd. v. C.C.E., Ahmedabad, 1996 (86) E.L.T. 177 (S.C) = AIR 1996 SC 2542. In that case raw naptha was obtained at the concessional rate and used for producing ammonia which in turn was used partly, directly in the urea plant and partly, indirectly in the production of urea by being empl....
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....-C.E. is availed or in provision of a service whose part of value is exempted on the condition that no credit of inputs and input services is taken? As per Rule 6(4) no credit can be availed on capital goods used exclusively in manufacture of exempted goods or in providing exempted service. Goods in respect of which the benefit of an exemption under Notification No. 1/2011-C.E., dated the 1st March, 2011 is availed are exempted goods [Rule 2(d)]. Taxable services whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken, are exempted services [Rule 2(e)]. Hence credit of capital goods used exclusively in manufacture of such goods or in providing such service is not allowed. 2. How is the "no relationship whatsoever with the manufacture of a final product" to be determined? Credit of all goods used in the factory is allowed except in so far as it is specifically denied. The expression "no relationship whatsoever with the manufacture of a final product" must be interpreted and applied strictly and not loosely. The expression does not include any goods used in or in relation to the ....