TaxTMI 
TaxTMI 
2025 (9) TMI 1535
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....iron ore, coal, and dolomite as primary raw materials. The rotary kiln operates at high temperatures where iron ore is reduced to metallic iron (sponge iron) through a complex chemical reduction process. The Appellant's plant has a rated capacity of 350 MT per day for production of sponge iron. In order to optimize production and to reduce costs, the Appellant proposed to procure low content/off grade sponge iron (technically termed as "partly reduced sponge iron") from other manufacturers and reprocess the same in their existing kilns to improve its metallization and quality parameters for sale as finished sponge iron. This partly reduced sponge iron typically has lower metallization (around 65-70%) compared to finished sponge iron (85....
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.... 28.03.2007. Being aggrieved, the Appellant preferred an appeal before the Hon'ble CESTAT, East Regional Bench, Kolkata. 3. He Hon'ble Tribunal, after hearing both parties, observed that the Order-in-Original was passed without properly considering the Appellant's reply and defense submissions. Accordingly, vide Final Order No. 7683876839/2017 dated 23.08.2017, the Tribunal remanded the matter back to the adjudicating authority with specific directions to pass a fresh order after examining the entire evidence and considering the Appellant's reply. In the remand proceedings, the Adjudicating authority confirmed the demand. Hence, the appellant has filed the present appeal before the Tribunal. 4. The Ld. Advocate submits....
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....t the issue is identical, involving the demand for the period July 2005 to December 2005. There is no change in the factual details. Hence, it is submitted that relying the cited Final Order, the present appeal may be allowed. 7. The Ld. Authorized Representative, appearing on behalf of the Revenue submits that it has been conclusively proved by various testing agencies that the low grade sponge cannot be used for manufacture of high grade sponge iron. He submits that the facts between the cited final order and the facts of the present case are different. Hence, he submits that the earlier Final Order cannot be applied to the present facts of the case. 8. In the rejoinder, the Ld. Counsel submits a comparative chart on important point....
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.... connection an investigation was conducted from various manufactures of Sponge Iron...to ascertain whether Sponge Iron can be manufactured from Sponge Iron purported to be partly reduced" False Manufacturing Claim Para 2.1: "goods Sponge Iron from the raw materials/ inputs viz., coal, Iron ore & Dolomite...NIPL had at the time of taking Registration with the department, declared their major inputs as iron-ore, coal and dolomite" Para 2: "NIPL manufactures Sponge Iron as an EPA...They used to get supply of Iron Ore as input required for the manufacture of Sponge Iron from M/s. TISCO" No Actual Processing Para 2.1: "no element of manufacture could be said to have been involved" Para 4: "None....
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....erature inside the kiln is always maintained and as the kiln rotates, the feed material comes out after completion of manufacturing process" Para 4: "As the temperature inside the kiln is always maintained since it takes long time to gain this heat energy...It is not possible to drain out half finished material in the midst of one processing cycle" Expert Opinion Para 2.1: "reference was also made to the National Metallurgical Laboratory at Jamshedpur, asking whether it was economically feasible to feed low grade Sponge iron in the kiln" Para 4: "The aforementioned facts revealed during the course of investigation clearly indicate that actually the item namely sponge iron partly reduced on which NIPL have taken Cenv....