Shyam Metallics & Energy Ltd Vs Commissioner of CGST & CX (CESTAT Kolkata)
Summary: The Kolkata Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed the appeal filed by Shyam Metallics & Energy Ltd against Order-in-Appeal No. 96/CE/RKL-GST/2018 dated 26.09.2018 passed by the Commissioner (Appeals) of CGST & Central Excise, Bhubaneshwar. The Tribunal pronounced Final Order No. 76067/2026 on 11.08.2026.
The appellant is engaged in the manufacture of sponge iron, ingot, billet and TMT bars falling under Chapter 72 of the Central Excise Tariff Act, 1985. It has a captive thermal power plant installed within its factory for production of electricity, which is used in the manufacture of its dutiable final products on which appropriate excise duty was discharged.
Fly Ash is generated during the production of electricity. The appellant disposes of the Fly Ash in accordance with the Environment (Protection) Act, 1986. For this purpose, it obtains transportation services for moving Fly Ash generated in the captive thermal plant to an ash pond located inside the plant and avails CENVAT credit of the service tax paid on such services. The appellant also clears Fly Ash from its factory on payment of appropriate excise duty and reflects such clearances in its ER-1 returns.
