Ajay Sharma DECISION
Ajay Sharma, Member (J)
1. This appeal has been filed challenging the Order-in-Appeal No. RPR-EXCUS-000-APPL-091-20-21 dated 22.3.2021 passed by the Commissioner (Appeals), Central GST & Central Excise, Raipur by which the learned Commissioner dismissed the appeal filed by the appellant by holding that the order passed by the Adjudicating Authority for denial of credit and imposition of penalty does not warrant any interference.
2. The facts leading to the filing of the instant appeal are stated in brief as follows. The appellant is the manufacturer of sponge iron and for this purpose they require raw material like iron ore, coal and dolomite. Screening of coal and iron ore is an integral and indispensable process in the manufacturing of sponge iron and in that process unavoidable by-product like Iron ore fines, Iron ore concentrates and coal fines are generated which have to be removed else it would stick on the inner wall of the Kiln and reduce the space inside the kiln called accretion, which in turn effect the production adversely. These by-product fetches very low prices in the market. According to department on this Iron ore fines/iron concentrates although the appellant have availed input Cenvat credit at the time of receipt in the factory but at the time of removal proportionate Cenvat credit amounting Rs. 6,39,681/- has not been reversed under provisions of Rule 3(5) of Cenvat Credit Rules, 2004 and also that the appellant had received short quantity of coal by 266.420 MT in their factory premises as compared to the quantity shown in the bill and wrongly availed cenvat credit of Rs. 25,416/- on that short quantity also which they neither received nor used for manufacture of the finished goods. Accordingly a show cause notice dated 11.8.2016 was issued to the appellant to show as to why:-
i The CENVAT Credit amounting to Rs. 6,74,865/- (Rs. 6,39,681/- + Rs. 25,416/-+ 9,768/-) (Rupees six Lakhs Seventy Four Thousand Eight Hundred & Sixty Five Only) should not be recovered from them under Rule 14 of the Cenvat Credit Rules, 2004 read with Section of 11A(4) of the Central Excise Act, 1944 and as to why the amount of Rs. 6,74,865/- already reversed by them should not be appropriated and adjusted against the said demand;
ii) Interest at the appropriate rates should not be recovered from them under Rule 14 of the CENVAT Credit Rules, 2004 ready with Section 11AA of the Central Excise Act, 1944 and the interest amounting to Rs. 16,619/- already paid by them should not be appropriated;
iii) Penalty should not be imposed upon them under Rule 15(2) of the CENVAT Credit Rule, 2004 read with Section 11AC of the Central Excise Act, 1944.
3. The said show cause notice was adjudicated by the Adjudicating Authority vide Order-in-Original dated 20.7.2020 by which the said authority confirmed the recovery of credit availed by the appellants alongwith interest and penalty. Aggrieved, the appellant filed appeal before the Commissioner (Appeals) but the same was rejected by way of impugned order.
4. Now the issue is whether the appellant is liable to pay central excise duty on removal of iron ore fines/iron ore concentrates? Learned counsel for the Appellant submits that in the de-novo proceedings, the lower authority without appreciating the submissions made in appellant's reply, confirmed the recovery alongwith interest and penalty which was upheld by the learned commissioner that too without appreciating the contentions raised by the appellant. He further submits the issued involved herein in squarely covered by the decision of this Tribun........