TaxTMI 
TaxTMI 
2023 (7) TMI 1501
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....short 'DSP'). As all the units are having separate registration for carrying out their manufacturing activity, but that is not in dispute. One of the primary raw materials required for manufacture of iron and steel products is iron ore. In order to assure supply of the said essential raw material to DSP, Bolani Ores Ltd. was incorporated as the private limited company in June 1957. However, by the Bolani Ores Ltd. and Miscellaneous Provision Act, 1978, the Central Government considering the fact that the Bolani Ores Ltd. was the main source of supply of iron ores to DSP and that without further substantial investments by way of capital outlay and otherwise the supply of iron ore to the said plant cannot be maintained, acquired the entire share capital of the said Bolani Ores Ltd., to vest in the Central Government. By Sections 5(1) and 6 of the said Act of 1978, however, the said shares acquired by the Central Government immediately stood transferred to and vested in the appellant on 1st January 1979. Pursuant to such acquisition of the said Bolani Ores Ltd., the said Mines situated in the state of Orissa became the property of the appellant and has been since then an unit of the a....
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....nd penalties were also imposed on the appellant. Aggrieved from the said order, the appellants are before us. 3. The Ld.Counsel appearing on behalf of the appellant submits that the issue in all these cases is whether credit of input services and capital goods used in captive mine of the appellant, Bolani Mines has been correctly availed by the appellant at its Durgapur Steel Plant and correctly utilized in or in relation to manufacture of dutiable final products and whether the cenvat credit availed and utilized by the appellant against the ISD documents issued by the Bolani Mines was legal and valid. Whether Bolani Mines can be termed as ISD under Rule 2(l) of the Cenvat Credit Ruels, 2004. 4. It is the submission of the Ld.Counsel that in terms of the decision of the Hon'ble Apex Court in the case of Vikram Cement (supra), the appelant is entitled to avail cenvat credit. It is his submission that both DSP and Bolani Mines were legal entities belonged to the appellant and have no separate legal existence except for being units of the appellant. The said two units along with the other units of the appellant are integral unit or entity. Consolidated Balance Sheets and Profit ....
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....sions:- (i) Indian Cement Ltd. v. CCE [2010 (261) ELT 603(T)] (ii) Maihar Cement Unit-II v. CCE [2013 (293) ELT 239 (T)] (iii) Maihar Cements v. CCE [2013 (296) ELT 209 (T)] (iv) K.D. Mistry & Company v. Hari Narayan Gole [1983 (II) LLN 946 (Bom), Paragraph 5] 6. He further submitted that there is no dispute that the iron ore produced in the Bolani Mines which were transferred to DSP was used therein as raw material in or in relation to the manufacture of dutiable finished products, in terms of the decision of the Hon'ble Apex Court in the case of Vikram Cement (supra), therefore, the appellant is entitled to avail cenvat credit of duty paid on the inputs used int eh Bolani Mines and utilized the same in DSP. The Ld.Counsel relied on the decision of Hon'ble Apex Court in the case of Madras Cements Ltd. v. CCE [2010 (257) ELT 321 (SC). It is the submission that as per the decision of the Hon'ble Apex Court, there is no requirement that the said inputs and capital goods had to be received and used in DSP's premises only. Receipt and utilizing the same in the mines from which the primary raw material, iron ore, is extracted and brought to DSP's f....
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....ondition. On the other hand, while providing for credit of duties paid on inputs, the said Rule uses the expression 'received in the factory of manufacture of final products'. Thus, the locational restriction has been deliberately not put while providing for credit of service tax on input service whereas in the case of credit of duties on inputs, the locational restriction was put by using the expression 'received in the factory of manufacture'. In spite of this, the Hon'ble Apex Court was pleased to hold in respect of the credit of duties paid on inputs that such credit was allowable even though inputs were received and used at the captive mines situated away from the factory. To support this contention, he relied upon the following decisions:- (i) CCE v. Ultratech Cement Ltd. [2010 (220) ELT 577 (Bom.)] (ii) CCE v. Stranzen Toyotetsu India (P) Ltd. [2011 (23) STR 444 (Kar.)] (iii) Ultratech Cement Ltd. v. CCE [2009 (243) ELT 575 (T)] (iv) CCE v. Hindustan Copper Ltd. [2016 (342) ELT 282 (T)] 10. On the other hand, the ld.AR for the department submits that DSP although an integrated unit of the appellant, but input received at Bolani Mines wa....