9911796707
TMI Blog2012 (9) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... steel and other excisable goods falling under chapter 72 of CETA, 1985. Proceedings were initiated against them that they have wrongly taken CENVAT Credit amounting to Rs.8,87,487/-(Rupees Eight Lakhs Eighty Seven Thousand Four Hundred and Eighty Seven only) on MS round which the department felt were not eligible as input. Lower adjudicating authority confirmed the demand and imposed equal amount of penalty. Aggrieved by the same the respondents filed appeal before Commissioner(Appeals), who in turn allowed the appeal of the respondents. Aggrieved by the same the Revenue filed this appeal. 4. The contention of the Revenue is that MS rounds is not used directly or indirectly in the manufacture therefore does not qualify as input as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he help of MS round both of which strikes the pointed furnace wall & being pursued inside the furnace for making necessary leakage-hole point to bring the hot liquid molten metal out of the furnace to maek the shape/form of metal cake & in course of such collision/striking for making hole, both the lancing pipe as well as MS round get melted/consumed with the hot liquid metal inside the furnace, where evidently no manual operation is possible under such high melting point temperature. This is how the said MS round is used which is technologically necessary for the purpose of completion of the process of manufacture & where the appellant does not have any control or option on this account against the worldwide prevailed technology. The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the finished product cannot be manufactured. Therefore, following the ratio of the Supreme Court decision as referred to above, I hold that the MS rounds are used in or in relation to the manufacture of the finished product. In other words these are inputs as defined in the said Rules. The appellant, therefore, had correctly availed the cenvat credit of the duty paid on such MS rounds. I find that the order of the lower authority is not sustainable on facts and in law. I, therefore, set aside the impugned order and allow the appeal. 7. We find that ld.Commissioner(Appeals) has given clear and cogent finding and Revenue could not produce anything contrary to the above. In these circumstances we do not find any reason to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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