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TMI Blog2016 (11) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... required to reverse input credit under rule 3(5B) of CCR, 2004. 2. SCN was issued as it appeared to revenue that in the process of charging of iron ore pellets in the blast furnace, the pallets of less than 3 mm size fines get separated and are not charged in the furnace which are collected separately and finally destroyed by the appellant as alleged, which amounts to writing off and accordingly the appellant is required to reverse the proportionate input credit under the provisions of Rule 3(5B) of CCR 2004. Accordingly, demand of Rs. 26,61,330/- was proposed along with penalty. 3. The appellant contested the SCN stating that the fines pursuant to segregation are lying as waste in the factory premises, and thus, there is no removal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being generated during the process and entire iron ore pellets is being used in the manufacturing of sponge iron. Accordingly, the ld. Commissioner (Appeals) recorded the findings based on the report of the jurisdictional Assistant Commissioner of Central Excise Division, Gorakhpur, that the value of pellets and fines have not been written off from the books of accounts, as such, Rule 3(5B) of the CCR, 2004 is not applicable. Further, the fines so generated in the course of production, are still lying in the factory premises as on the date of SCN. The ld. Commissioner (Appeals) has relied on the ruling of this Tribunal in the case of CCE, Raigadh Vs. Vikram Ispat Ltd.: 2007 (211) ELT 60 wherein under similar facts and circumstances, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate order be set aside. 6. Heard the parties. 7. Having considered the rival contention, I find that the condition precedent under Rule 3(5B) of CCR, 2004 is, if the value of any inputs/goods have been written off fully or partially or where any provision to write off fully has been made in the books of accounts, in respect of value of any inputs, then the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the Cenvat credit taken in respect of the said inputs. I hold that in the facts and circumstances of this case, there being no writing off or removal of inputs under the provisions of Rule 3(5B) of CCR, 2004, the same is not attracted. Accordingly, I dismiss the appeal of Revenue. The responden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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