TaxTMI 
TaxTMI 
2026 (6) TMI 396
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....sed by the Commissioner deciding the proposals in the show cause notice dated 1.5.2015 [SCN] and confirmed denial and recovery of Rs. 2,41,33,025/- of CENVAT credit taken by the appellant during 20102011 to 2014-2015. The demand was confirmed under Rule 14 of CENVAT Credit Rules, 2004 [CCR] read with section 11A(1)/11A(5) of the Central Excise Act, 1944 [Act] read with Section 174 of the CGST Act, 2017. An equal amount was imposed as penalty under Rule 15 of CCR read with section 11AC(1) (b) of the Act read with section 174 of the CGST Act. 2. We have heard both sides and perused the records. 3. The undisputed facts are that the appellant was registered with the central excise department and was manufacturing steel and steel products ....
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....contested the impugned order both on merits and on limitation. He further contested the imposition of penalty. 8. We proceed to examine the issue on merits because if we find it in favour of the appellant, it may not be necessary to examine the other submissions with respect to limitation, interest and penalty. 9. The finding on this issue in paragraph 23 of the impugned order is reproduced below: ".... Since the quantity of iron ore shown as losses during crushing has not been received and has not gone into the process of production, the quantity of iron ore is not input for them and the corresponding portion of the crushing charges including mining, handling, loading service attributable to the said quantity cannot be consi....
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....er referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or (B) services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods; or (BA) service of general insurance business, servicing, repair and maintenance, in so far as they relate to a motor vehicle which is not a capital goods, except when used by - (a) a manufacturer of a motor vehicle in respect of a motor vehicle ma....
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....defined in the CCR. Rule 2(t) of the CCR reads as follows: (t) words and expressions used in these rules and not defined but defined in the Excise Act or the Finance Act shall have the meanings respectively assigned to them in those Acts. 13. Therefore, we must refer to the Act to understand the meaning of 'manufacture'. Section 2(f) of the Act defines manufacture as follows: 2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,- (f) "manufacture" includes any process- (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter Notes of the Fourth Schedule as amounting ....
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.... as 'input service'. 16. When Michelangelo was asked as to how he created such beautiful sculptures, he famously said that they were already there and he only removed the excess marble. Similarly, when an ore is mined and crushed or an article is cut, ground or polished, the excess material is removed. Until the advent of the modern 3-D printing techniques which manufacture goods through accretion of material, almost all manufacturing was based on removal of excess or unwanted material or re-shaping the material. A casting, for instance, is heated and forged by hitting it repeatedly into the desired shape and removing unnecessary material which is then subject to grinding to further remove unnecessary material which is followed by furthe....