TaxTMI 
TaxTMI 
2018 (10) TMI 1733
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of the case are that the appellants were engaged in the manufacture of aluminium and aluminium products falling under Chapter 76 of schedule to Central Excise Tariff Act, 1985. They were having Central Excise registration. They were availing facility of Cenvat credit. The appellants were receiving raw material Bauxite-ore from various mines which were named by the appellant as Lohardaga Mine situated in the State of Jharkhand, Bagru Mine situated in the stated of Jharkhand and Samri Mine situated in the state of Chhattisgarh. Various input services were received at the said mines. The said input services were distributed by the said mines to the manufacturing units of the appellant. The input services were GTA Service and Business Auxilia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er, ISD which supplied Ores to Indian Aluminium (INDAL) unit and factory at Renukoot did not segregate services. In the said show cause notice dated 29.04.2011 it was alleged that Lohardaga mine did not file ST-3 return in respect of ISD for the period from 2007-08 to 2010-11 and in returns for the period from October, 2006 to October, 2007 the details about the credit distributed was absent. On contest, all the above said three show cause notices were taken together and decided through the impugned Order. The Original Authority has disallowed the Cenvat credit of around Rs. 18 crores under Section 11A of the Central Excise Act, 1944 read with Rule 14 of Cenvat Credit Rules, 2004 and imposed penalty of around Rs. 14.55 crores under Section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... At the mines, appellant received several input services for carrying out operations of mines. The input services were GTA Services and Business Auxiliary Service. All the bills were raised on captive mines and service tax paid thereon was distributed through ISD invoices to the appellant factory at Renukoot and the same was availed as Cenvat credit. He has further submitted that mines located at Lohardaga, Samri and Bagru hills are captive mines as is evident from the terms of mining lease executed for said mines between the appellant and the respective State Government which have granted them mining lease and that the documents related to mining rights established that the said captive mine were supplying only to the appellant and the sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut service distributor. He has submitted that Lohardaga mine was registered as input service distributor w.e.f. 16.06.2005 and as per the provisions of Rules inputs service distributor is eligible to distribute the credit of service tax paid on the services through challans issued by input service distributor and therefore the said Cenvat credit was admissible to the appellant. He further relied on the Final Order passed by this Tribunal in the case of Castrol India Ltd. Vs Commissioner of Central Excise, Vapi reported at 2013 (291) ELT 469 (Tri.-Ahmd.). Learned Counsel has further submitted that the ruling by Hon'ble Allahabad High Court through its order dated 22.11.2017 passed in the Central Excise Appeal No. 704 of 2012 in the case of c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt of Gujarat that not taking registration was only a procedural irregularity. He has submitted that for procedural irregularity substantial benefit cannot be denied. 6. Learned Counsel further submitted that Bauxite was input for the manufacture of aluminium and the input services which were used in the mines were for the purpose of manufacture of aluminium and therefore said input services were eligible for availment of Cenvat credit by the manufacturer who is the present appellant. 7. Learned Counsel further argued that as per Rule 7 of Cenvat Credit Rules, 2004 input service distributor can distribute Cenvat credit to the manufacturing unit. He further argued that services received in the captive mines were part of the activities re....