Jsw Steel Ltd Vs Commissioner of Central Excise (CESTAT Bangalore)
M/s Jindal Steel Works Ltd. (JSW) manufactures iron and steel products falling under Chapter 72 of the Central Excise Tariff Act, 1985 and avails CENVAT credit on inputs, capital goods and input services.
Following an audit, Revenue alleged wrongful availment of CENVAT credit on various inputs and services. Three show cause notices dated 06.12.2010, 02.05.2011 and 10.02.2012 covered the period from November 2005 to October 2011 and culminated in Order-in-Original No. 03/12 dated 16.03.2012. JSW challenged the order in Appeal No. E/1697/2012.
Revenue subsequently issued show cause notices dated 05.12.2012, 29.05.2013, 05.12.2013 and 27.01.2014 covering November 2011 to March 2013. These proceedings resulted in Order-in-Original No. 01/15-16-CX dated 04.06.2015, confirming demands of Rs.11,57,63,597/- while allowing credit for certain services. JSW filed Appeal No. E/21886/2015. Revenue filed Appeal No. 21990/2015 against allowance of credit of Rs.53,59,32,598/- and non-quoting of Rule 15(1) of the CENVAT Credit Rules read with Section 11AC of the Central Excise Act or Section 76 of the Finance Act, 1994.
JSW submitted that credit had been denied on grounds that the services were not received or utilised at the place of manufacture, were unrelated to manufacture, were consumed by individuals, lacked proper descriptions, were not established as essential for manufacture, or related to vehicles, aircraft and railways not qualifying as capital goods or inputs. It was argued that these grounds were contrary to Rule 2(l) and Rule 3(1) of the CENVAT Credit Rules, 2004.
