Case Law Details
Anjaney Ispat Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that receipt, utilization and duty paid nature of the input Sponge Iron was not in dispute. Hence, CENVAT credit duly available as input Sponge Iron is utilized in manufacturing of finished goods i.e. Pig Iron.
Facts- The officers of the department visited the factory of the Appellant and it was revealed from the RG-23 Register maintained by them that they have received the input ‘Sponge Iron’ and availed Cenvat credit on the same. But, the Charging Report does not reflect the quantity of Sponge Iron charged in the Blast Furnace. Thus, the officers were of the view that ‘Sponge Iron’ was not required for manufacture of Pig Iron and the Appellant has wrongly taken the credit on the ‘Sponge Iron’ as their input without using the same in the manufacture of Pig Iron. The officers also found from the Costing Sheet, the cost of Sponge Iron was not taken into consideration by the Appellant. Accordingly, the officers initiated investigation to ascertain as to whether Sponge Iron is required along with other inputs viz. Iron Ore & Coke supplied by TISCO, for manufacture of Pig Iron.
The appellant was issued show cause notices on the basis of the allegation that they have availed irregular Cenvat credit on ‘sponge iron’ which has not been used in the manufacture of Pig Iron. The Adjudicating authority vide Order-in-Original dated 23/11/2007 decided all the three show cause notices and confirmed the demands made in the Notices. Penalty equal to the duty was also imposed on its Director Shri Uday Singh, under Rule 15(1) of the Cenvat Credit Rules, 2004. The present appeals filed by the Appellants are against this impugned order.
Conclusion- Held that the receipt of the input Sponge Iron into the factory was not in dispute. The RG-23 Register maintained by the appellant, the Gate Register and the Stores Register containing all the details about the transport details of the Sponge Iron and issue of the same for manufacture of Pig Iron. The duty paid nature of the Sponge Iron was also not in dispute. Since receipt, utilization and duty paid nature of the input Sponge Iron was not in dispute, we hold that the Appellant are eligible for the Cenvat credit of the input Sponge Iron, as the same has been utilized in the manufacturing of finished goods Pig Iron. We observe that there was no violation committed by the Director Shri Uday Singh. Thus, we hold that no penalty is imposable on the Director under Rule 15(1) of Cenvat Credit Rules, 2004. Accordingly, we set aside the impugned order.
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