2012 (11) TMI 1032

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..... ing aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. 2. I have heard Shri B.B. Sharma, learned AR appearing for the Revenue and Shri S.P. Ojha, learned Consultant appearing for the respondent assessee. 3. The appellants are engaged in the manufacture of sponge iron and are availing the facility of Cenvat credit of inputs, capital goods and input se .....

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..... ce, the present appeal by the Revenue. 5. On going through the impugned order of the Commissioner (Appeals), I find that he has observed as under : "5.1 In the present case appellant have set up their factory to manufacture sponge iron and along with other raw materials, and coal they used iron ores. They proceed lumps of such iron ore which are subjected to grading so that chunks of iron ore of .....

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..... into existence as a result of process of manufacture. Further the applicant have set up their unit for production of sponge iron and it also clear that appellant have not establish a factory for manufacture of waste. They are using Iron ore as a raw material. In the process of handling, sorting, grading, screening of the raw material and to obtain iron ore of desired size to be used in the kiln, i .....

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..... g submitted by them to the Superintendent Range and as they have submitted ER-6 Return regularly. Which is otherwise also exempt the impugned iron ore fines from payment of duty and satisfy requirements of Cenvat Credit Rules. I find the lower authority has ignore and also failed to consider such a vital fact wrongly confirm the demand of duty on supra qty. of iron ore fines, which has been cleare .....

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..... irement of payment of 10% of the value of exempted product is relatable to the final product and not to waste or by-product. Inasmuch as the fine sponge iron emerged as waste material during the course of sponge iron, I am of the view that Commissioner (Appeals) has rightly held that there is no requirement of payment of 10% of the value of iron ore fine cleared by the appellant. No infirmity is f .....

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