9911796707
TMI Blog2013 (9) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... auxiliary service and also registered for payment of service tax. They are also availing the facility of Cenvat credit on inputs, capital goods and input services under Rule 3 of the Cenvat Credit Rules, 2004 as amended. The appellants are engaged in the process of crushing of iron ore lumps. During the course of scrutiny of records, it was observed that the appellants had availed the Cenvat credit on the items viz. vibrating steel spring screen treating the item as input. According to the department, the Cenvat credit of duty paid on the steel spring screen is not permissible to the appellants on the ground that the same has not been used for providing the output service. Accordingly three show cause notices were issued to the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case also. 4. Ld. DR appearing for the Revenue submits that the Commissioner (Appeals) in the impugned orders had denied the benefit on the steel spring screen on the ground that the said inputs are not used in providing the output service and are not covered under the definition of input under Rule 2(k) of Cenvat Credit Rules. He submits that this item cannot be said to be used for the manufacture of capital goods as the appellants are not involved in any manufacturing activity. Therefore the credit taken on the vibrating steel spring screen has rightly been disallowed by the lower authority to the appellants. 5. After hearing both the sides, I find that vibrating steel spring screen is used by the appellants in their crushing unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of crushing of iron ore lumps. When the iron ores is crushed there are activities of segregating/crushing in respect of various sizes of ore. Accordingly, the segregating/screening activity becomes essential activity for crushing of the iron ore. Therefore credit of duty paid on the screening cannot be denied to the appellants on the ground that the said screening has not been used for providing the output service. I also find that the Commissioner (Appeals) himself has allowed the credit in respect of the vibrating steel spring screen vide his order-in-appeal number cited above in respect of the present appellant and also in respect of M/s. Alok Ferro Alloys Ltd. I therefore hold that the finding of the Commissioner (Appeals) not allowin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
