2019 (9) TMI 789

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....apter 72 of CETA, 1985 and are availing CENVAT credit of duty paid on inputs, capital goods and service tax paid on input service. Appellants are purchasing the inputs i.e. iron ore from the Monitoring Committee(MC for short) and on such purchase of iron ore, the MC issues tax invoices and the appellants are paying the price of the iron ore, royalty charges on the said iron ore, service tax on the said royalty charges, FDF and VAT. After paying the service tax on the royalty charges, the appellant availed the credit of the same as input service in terms of Rule 2(l) of CENVAT Credit Rules, 2004 and utilized the same towards payment of excise duty. During the audit of the records of the appellant, it was observed that the appellant has avail....

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....t, along with using such iron ore as input, has also used the service of right to extract as input service by paying royalty charges for extraction of such iron ore. Further he submitted that appellant being bona fide purchaser of such iron ore has paid the royalty charges and service tax thereon as charged by the Monitoring Committee, Department of Mines & Geology in their tax invoices and such collection of service tax on royalty charges was not disputed by the Department. He further submitted that once the appellant has paid the service tax, then the appellant is entitled to take the CENVAT credit on the same and the Department cannot question the availment of CENVAT credit at the appellant's end. For this submission, he relied upon the ....