Steel Authority of India Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, arose from an order confirming a demand of Cenvat credit along with interest and imposing an equivalent penalty on the appellant. The appellant is a Government of India undertaking operating integrated steel plants across the country. The present dispute relates to its Durgapur Steel Plant (DSP) located in Durgapur in the district of Burdwan, West Bengal.
DSP manufactures various iron and steel products and by-products falling under several chapters of the First Schedule to the Central Excise Tariff Act, 1985, including Chapters 72, 73, 84, 86, 27, 28 and 29. The plant is duly registered under the Central Excise Act, 1944 for carrying out manufacturing activities. As an integrated steel plant, DSP uses different types of plant and machinery in the manufacture of dutiable iron and steel products. Within the plant, a Central Engineering Maintenance Shop (CEM) operates for the purpose of manufacturing stores and spare parts required for maintenance of plant and machinery installed in the factory. In the course of such activity, the CEM shop uses materials such as plates, angles, channels, bars, sheets and rounds to manufacture spare parts required for the machinery used in producing final products.
