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TMI Blog2013 (5) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... of screening and process of screening would definitely a part of the manufacturing process. After the iron ores are subjected to the process of screening, the same could not be called as input as such. Secondly, Rule 3 (5) of the Cenvat Credit Rules, 2004, is directed for reversal of cenvat credit on inputs or capital goods and the same is not applicable to the credit availed on the "input services". See Punjab Steels (2010 (7) TMI 252 - PUNJAB AND HARYANA HIGH COURT) & Chitrakoot Steel & Power (P.) Ltd. (2007 (11) TMI 135 - CESTAT, CHENNAI) wherein held that when the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be reversed being not used in the manufacture of final products. The said demand was confirmed by the adjudicating authority and an penalty of ₹ 2,000/- was imposed under Rule 15 of Cenvat Credit Rules, 2004, besides recovery of interest. Aggrieved, the appellants filed the appeal before the ld. Commissioner (Appeals), who upheld the order of the adjudicating authority. Hence the appeal. 3. The ld. Advocate appearing for the appellant, submitted that they are engaged in the manufacture of sponge iron and the iron ore is one of the basic raw materials for the manufacture of the said finished goods. During the relevant period, they purchased the sized ores for the manufacture of sponge iron and the fines content have to be first re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss, hence, the condition of use in or in relation to as mentioned in Rule 2 (I) read with Rule 3 (1) stands fully satisfied. Further, he submitted that Rule 3 (5) of Cenvat Credit Rules, 2004, prescribed reversal of cenvat credit on inputs or capital goods when removed as such , whereas in the present case, neither the inputs nor the capital goods were removed as such, but the demand relates to the inputs service tax credit availed on GTA services for bringing the inputs, namely, iron ores into the factory. It is the submission that Rule 3 (5) of Cenvat Credit Rules, 2004 does not apply to input services. He referred to the decision of the Hon'ble Punjab Haryana High Court in the case of CCE v. Punjab Steels [2010] 29 STT 168. He r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re required to be reversed under Rule 3 (5) of Cenvat Credit Rules, 2004. I do not find merit in the said allegation of the Department on two counts ; firstly, the input iron ores after being brought to the factory, were subjected to the process of screening and process of screening as explained by their Id. Advocate, would definitely a part of the manufacturing process. After the iron ores are subjected to the process of screening, the same could not be called as input as such. Secondly, I find that Rule 3 (5) of the Cenvat Credit Rules, 2004, is directed for reversal of cenvat credit on inputs or capital goods and the same is not applicable to the credit availed on the input services . In this connection, the Hon'ble High Court of Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or governing purpose of the statute more than what is stated in the plain language. Words cannot be added or substituted so as to give a particular meaning 6. The same view was taken by this Tribunal in the case of Chitrakoot Steel Power (P.) Ltd. (supra) The relevant portion of the Order of the Tribunal in the case of Chitrakoot Steel Power (P.) Ltd. (supra) is reproduced below : 5. On a careful study or the statutory provisions, it is seen that when the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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