Case Law Details
Usha Martin Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that denial of credit of service tax stating that coal and iron ore mines situated away from the factory is unsustainable as no material has been placed on record by the revenue to substantiate that the mines were owned by separate entities.
Facts- The Appellant has a manufacturing facility at Adityapur Industrial Area, Gamharia, Jamshedpur, engaged in the manufacture of dutiable iron and steel products falling under Chapter 72 of the CETA. Iron ore and coal are essential inputs for manufacture of the said dutiable final products.
Five periodical Show-cause Notices were issued covering the period 2005-06 to 2010-11 to the manufacturing facility of the Appellant proposing denial of Cenvat credit of service tax in respect of services provided at the coal/iron ore mines to the manufacturing facility. Further, Bokna Iron Ore Mines of the Appellant, which had obtained registration as an ISD, was also made a Co-Noticee for imposition of penalty in four out of five Notices for the alleged violation of Rule 7(b) read with Rule 15 of the Cenvat Credit Rules (CCR).All the five Show-cause Notices were issued invoking the extended period of limitation.
The crux of the issue before us in all these appeals is whether cenvat credit of service tax could be availed by the factory in respect of input services received at the captive coal & iron ore mines, either directly or on the strength of the ISD invoices issued by the Bokna Mines Office.
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