9911796707
TMI Blog2024 (11) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... 12) TMI 1062 - CESTAT KOLKATA] , wherein, on similar facts, it has been held by this Tribunal that the Appellant is entitled to avail CENVAT Credit of input services relating to captive mines. The present appeal covers the period 2006-07 to 2011-12 (up to June 2012), for the same unit. The mines and the Appellant s manufacturing unit belongs to one legal entity, which is engaged in manufacture of dutiable goods. Therefore, the observation given by the Ld. Commissioner that distribution of credit by the mines is in contravention of Rule 7(b) of the CENVAT Credit Rules is legally not tenable. Thus, the distribution of credit by captive mines as ISD is in accordance with the provisions of law. The demands of service tax along with interest and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ater to the raw material requirement of the various manufacturing units of SAIL including the Appellant s plant. In case of excess amount of raw material, the same is also sold to the other steel plants. The mines avails various services at the mines like Cargo handling, mining service, security services, etc. within the mines. These service providers raise invoice in favour of the mines and subsequently such mines avails credit of input services. Thereafter, the credit of such service is distributed to the manufacturing units of the SAIL through ISD invoices. 2.1 Proceedings were initiated against the Appellant vide issuance of a Show Cause Notice dated 29.08.2012. It has been alleged that the Appellant has availed CENVAT Credit on the str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is a settled legal position that captive mines constitute one integrated unit together with the manufacturing unit and thus, inputs used in captive mines for production of dutiable goods in a manufacturing unit would be eligible for credit. Reliance here is placed on the decision of Vikram Cement v. Commissioner 2006 (197) ELT 145 (SC). 3.1. The Appellant submits that the issue is no longer res integra, as this Tribunal decided the same issue in their own case for the period June 2016 to June 2017, reported as Steel Authority of India Ltd. v. Commissioner of CGST CE, Bolpur 2023 (12) TMI 1062- CESTAT Kolkata, wherein, on similar facts, it had been held by this Tribunal that the Appellant is entitled to avail CENVAT Credit of input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice, mining service, transportation etc used by the captive mines bears a direct nexus with Appellant s units manufacturing final products i.e. Steel. Hence, such services are very well covered within the scope of the definition of input services . Rule 3 of CCR does not mandate that for the purpose of availment of credit on input services, such services should be received within the premises where manufacture of final product takes places but only provides that services should be used in or in relation to the manufacture of final products. Thus, we find that the Appellant is entitled to avail credit of service tax paid on input services received at the mines, which serves as an intermediate product for manufacture of final product i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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