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TMI Blog2019 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... maller parts and feeding them into the blast furnace for manufacture of pig iron. In this process, very small fine particles of the ore fall out which are known as Iron Ore Fines. The appellant was served a notice stating that in the process of manufacture of their final product, the iron ore fine are also manufactured which are exempted under notification No. 4/2006-CE, dated 01.03.2006. But for the exemption notification, the iron ore fines covered under Chapter Heading 2601 1130 to 260111140 attract tariff rate of 12% duty. Since the iron ore fines are exempted and the CENVAT Credit is availed on inputs used in manufacture of their final product as well as iron ore fines, they are required to reverse 6% of the value of the iron ore fines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gues that whether or not the notification exists, they are not liable to pay Central Excise duty on the iron ore fines because they do not manufacture them. The Rule 6(3) of CCR 2004 only requires one to reverse the CENVAT Credit on the common inputs and common input services used in the manufacture of both exempted and dutiable products. Since they are not manufacturing Iron Ore Fines, they cannot be considered as exempted excisable products. She relies on the case of Maa Mangla Ispat Pvt. Ltd. [2013(293)E.L.T. 380 (Tri.-Del.)], Seleno Steels Limited [2013(287)E.L.T. 93 (Tri.-Del.)], Nav Durga Fuels Pvt. [2016(340)ELT 526 (Tri.-Del.)] and Aarti Sponge & Power Limited [2017(350)E.L.T. 268 (Tri.-Del.)] and asserts that in all these cases on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2015, it is his assertion that this is only an explanation and hence is clarificatory in nature and has to be applied to cases prior to issue of this notification as well. He further argues that the entire manufacturing process of iron ore begins with breaking of iron ore into smaller parts and feeding them into blast furnace. This process of breaking iron ore lumps itself is integral part of manufacturing process and it cannot be treated as a process separate from the manufacture. Therefore, iron ore fine which emerges during the process of breaking of iron ore lumps into smaller parts are to be considered as emerging out of manufacture. Therefore, iron ore fines are indeed manufactured by the appellant, as a joint product along with pig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal have taken a view in the case of Maa Mangla Ispat Pvt. Ltd. (Supra), Nav Durga Fuels Pvt. Ltd. (supra), Soleno Steels Ltd. (supra) and Aarti Sponge & Power Limited (supra). It was felt in all these cases that reversal of CENVAT Credit under Rule 6(3) of CCR 2004 is not necessary with respect to iron ore fine which emerges during the process of iron ore. I respectfully follow the ratios of these decisions. I have also considered the contention of Ld. DR that w.e.f. 01.03.2015, the reversal under Rule 6(1) of CCR is necessary even in respect of non excisable goods which are cleared for consideration from the factory. I find it so. I, however, do not agree with his contention that his explanation is deemed to have retrospective effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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