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TMI Blog2018 (7) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX, BBSR-II [2013 (5) TMI 119 - CESTAT KOLKATA], where it was 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 amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Appeal allowed - decided in favor of appellant. - EX/326/2010 - FO/76363/2018 - Dated:- 9-4-2018 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri Kartik Kurmi S. B. Sharma, Advocate for the Appellant (s) Shri. S. Mukhopadhyay, Supdt. (AR) for the Respondent (s) ORDER Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 532 (Tri.-Kol)] 3. The ld. AR for the Revenue reiterated the findings of the lower authorities. 4. Heard both sides and perused the appeal records. 5. On perusal of records, I find that the iron ore fines and coal fines generated in the process of manufacture, are nothing but waste products. I find that the Revenue has relied upon the decision of this Tribunal in the appellant s own case vide Order No. FO/77839-77842/2017, which is in favour of the Revenue. However, I find that this decision is not applicable to the facts of the instant case as the Commissioner (Appeals) has decided the issue on merits in the instant case 6. I find the Tribunal in the case of Seven Star Steels Limited (Supra) on the identical issue allowed the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Punjab Haryana in the case of Commr. of Central Ex., Chandigarh-I v. Punjab Steels (cited supra), had observed at Para 10, which reads as under : 10. Be that as it may, however, still even on merits, this court finds that the view as expressed by the Tribunal is strictly in conformity with the Rules. Rule 2(k) of the Rules defines input , whereas Rule 2(1) defines input serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of Chitrakoot Steel Power Pvt. Ltd. is reproduced below : 5. On a careful study of 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 such inputs or capital goods when removed from the factory. Moreover, Rule 14 of the Cenvat Credit Rules, 2004 provides for recovery of Cenvat credit availed or utilized wrongly. In the instant case, the appellants had taken the credit correctly in terms of the statutory provisions. No provision exists in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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