2012 (9) TMI 1004

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..... t Shri A.K.Biswas, Supdt.(A.R.) for the Respondent ORDER Per Dr. D.M. Misra. 1.This is an application for waiver of pre-deposit of CENVAT Credit of ₹ 62,41,912/- and equal amount of penalty imposed under Rule 15(2) of CENVAT Credit Rules, 2004. 2.Briefly stated the facts of the case are that the appellants are engaged in the manufacture of various iron, steel and allied products falli .....

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..... ich Service Tax had been paid by the service providers. The Bolani Ore Mines availed CENVAT Credit on the same after being registered as an input service distributor and later distributed the credit by issuing invoices in the name of the applicant, who in turn had availed CENVAT Credit on the basis of said invoices. The department proposed to deny CENVAT Credit amounting to ₹ 62,41,912/- ava .....

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..... bmitted that the iron ore extracted in Bolani Mines are used in various plants of the applicants including their plant at Durgapur. The applicants submitted that the Bolani Mines is a captive mine and the ores extracted are used in or in relation to the manufacture of the final products and iron ores are not sold in the market, therefore, the Service Tax credit availed at their office at Bolani Mi .....

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..... The reasoning advanced by the ld.adjudicating authority in disallowing the CENVAT Credit availed at Durgapur is that Bolani Ore Mines is nothing but mines and cannot be termed as an office of the applicant and hence could not be an input service distributor. Prima facie, in our opinion the said conclusion cannot be acceptable, in view of the definition Input Service Distributor contained in Rule .....

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..... s, 2004. In these circumstances, we find that the applicants are able to make out a prima facie case for total waiver of pre-deposit of duty and penalty. Consequently, the requirement of pre-deposit of duty and penalty are waived and recovery thereof stayed during pendency of the appeal. Stay petition allowed. (Operative part of the order was pronounced in the open court.)
Case laws, Decision .....

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