TaxTMI 
TaxTMI 
2023 (6) TMI 1155
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....nufacture of Pig Iron. The Appellant stated that they installed a Mini Blast Furnace designed on new technology for low investment and high potentiality and adaptability and it was different from Blast Furnace of other manufacturers. For manufacturing Pig Iron, the appellant was using Iron Ore, Sponge Iron, Nut Coke, Lime Stone, Dolomite, L.D. Slag etc. The appellant was availing credit of the duty paid on those inputs. 2. The appellant was also acting as a Conversant Agent of M/s. TISCO Limited. In terms of the Agreement between them, M/s. Tata Steel was supplying BF Grade Iron Ore and Nut Coke, for manufacturing of Pig Iron. Other inputs were procured by the Appellant from the market and used the same in the manufacture of Pig Iron. Tata....
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....d to compensate the shortage of Coke supplied by TISCO. Shir B.M. Bhardwaj, Head of Raw Material Division, TISCO, in his statement dated 19/09/2005, admitted that the appellant had pointed out about the shortage of Coke under the parameter fixed in the aforesaid Agreement and requested for supply of more Coke informally but which was not agreed to by TISCO. Shri Bhardwaj also stated that they are not specific in regard to use of other inputs in the order. Thus, the investigation by the officers did not establish conclusively that Sponge Iron is an input in the manufacture of Pig Iron or not. 5. The appellant was issued with three show cause notices dated 09/11/2006 for the period 01/10/2005 to 31/12/2005, SCN dated 12/12/206 for the period....
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....economical to use Sponge Iron to control cost. The appellant was maintaining all records as prescribed under the Central Excise Act and maintaining Gate Register recording in and out of the goods, vehicle number, name of the party, quantity of the goods received, mentioning time and the same were properly signed by the Security Personnel. These Registers clearly indicate the receipt and proper accounting of the Sponge Iron procured and used by them in the manufacture of Pig Iron. Accordingly, they stated that the allegation of the department that they have not used the Sponge Iron in the manufacture of Pig Iron and the consequent proposal to deny the Cenvat credit availed on it, were only on presumption basis, without having any evidence to....
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....d order the adjudicating authority relied upon the following grounds to conclude that the Appellant has not used the Sponge Iron in the manufacture of Pig Iron and denied the credit: (i) The RG-23 Register shows the availment of credit, but the Charge Report did not indicate the issue of Sponge Iron for the manufacture of Pig Iron. (ii) The officers found from the Costing Sheet, the cost of Sponge Iron was not taken into consideration. (iii) The investigation has relied upon the literature 'Making Shaping and Treating of Steel' published by Association and Iron & Steel Engineers of United State Steel, to support of their allegation that Sponge Iron was not viable for use in the manufacture of Pig Iron. (iv) In the Central Excise Registr....
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....f Sponge Iron reduces the use of Coke. Since it is not an essential major input in the manufacturing of Pig Iron, we agree with the submission of the Appellant that on the basis of one day verification by the officers , it cannot be concluded that the Appellant has never used Sponge Iron in the manufacture of Pig Iron. (ii) The Appellant stated that they were manufacturing Pig Iron for TISCO, on the basis of the inputs BF Grade Iron Ore and Nut Coke supplied by them and collect job charges. Therefore, the costing of the product was not required, as they were not marketing the same. The costing sheet seen by the officers was an internal document prepared to arrive at the job charges. Hence, they contended that the costing has no relevance t....