2021 (3) TMI 402 - AT - Central Excise

CENVAT Credit - raw materials used for the manufacture of pig iron - Rule 6 of the Cenvat Credit Rules, 2004 - HELD THAT - All the inputs are utilized for the manufacture of pig iron and boulder slag is only waste generated in the course of manufacture of pig iron. Therefore, the cenvat credit is not taken specifically for the manufacture of boulder iron. It has been held time and again by the Tribunal and the Superior Courts that boulder, like bagasse, coming into existence in the manufacture of sugar cannot be held to be excisable for the purpose of payment of amounts under Rule 6 of the Cenvat Credit Rules, 2004. This Bench of the Tribunal in the appellant s own case NEO METALIKS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, BOLPUR 2016 (12) TMI 1214 - CESTAT KOLKATA , on the same issue, had allowed their appeal relying upon the Tribunal s decision in the case of TATA METALIKS LTD. VERSUS COMMISSIONER OF C. EX., KOLKATA-II 2002 (10) TMI 179 - CEGAT, KOLKATA . Credit allowed - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant is entitled to cenvat credit on raw materials used for manufacturing pig iron?
Whether boulder slag generated during the manufacturing process is excisable for the purpose of payment under Rule 6 of the Cenvat Credit Rules, 2004?

Analysis:
The judgment by the Appellate Tribunal CESTAT Kolkata, delivered by Hon’ble Shri P.K. Choudhary, Judicial Member, addresses the issue of cenvat credit entitlement for a manufacturer of pig iron. The appellant avails cenvat credit on raw materials used in pig iron manufacturing. It is noted that all inputs are solely utilized for pig iron production, and boulder slag is considered waste generated during the manufacturing process. The Tribunal and Superior Courts have consistently ruled that waste products, such as boulder slag, arising during manufacturing are not excisable for payment under Rule 6 of the Cenvat Credit Rules, 2004. The judgment refers to a previous case where the Tribunal allowed a similar appeal, citing the decision in Tata Metalliks Ltd. Vs. Commissioner of Central Excise, Kolkata II. Based on this precedent, the Tribunal sets aside the impugned orders and allows the appellant's appeal, providing consequential relief if applicable.

In conclusion, the judgment clarifies that the appellant, a pig iron manufacturer, is entitled to cenvat credit on raw materials used for manufacturing, and the boulder slag generated during the process is not excisable for payment under Rule 6 of the Cenvat Credit Rules, 2004. The decision is based on established legal principles and precedents, ensuring consistency in the application of tax rules for similar cases.