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TMI Blog2025 (2) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant against the ISD documents issued by the Bolani Mines was legal and valid - Bolani Mines can be termed as Input Service Distributor under Rule 2(l) of the CENVAT Credit Rules. HELD THAT:- The issues involved is no more res integra, as this Tribunal has already decided these issues in favour of the appellant in their own cases, with respect to the companies located at other places and for different periods - The credit disallowed along with interest and the penalties imposed in the impugned order are not sustainable. Conclusion - The distribution of credit by captive mines as ISD was in accordance with the law, and the credits disallowed in the impugned order were not sustainable. The appeals filed by the appellants /SAIL are al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding cess) was disallowed. Equivalent amount of penalty of Rs. 2,03,64,507/- was imposed upon the appellant under Rule 15(1) of the CENVAT Credit Rules. Being aggrieved, SAIL has preferred the appeal no. E/75039/2014 being one of the instant appeals. 2.1. On December 16, 2015, SAIL received a consolidated Order (Original) No. 20-23/COMMR/DGP /15 dated November 30, 2015, passed by the Commissioner confirming the allegations made in four show cause notices related to availment of CENVAT Credit on inputs and capital goods and disallowed CENVAT Credits amounting to Rs. 1,38,46,901/- availed on inputs and Rs. 5,45,78,788/- availed on capital goods (in both cases including cess). The Commissioner also imposed penalties of Rs. 1,38,46,901/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,25,39,068/- was also imposed upon the appellant under Rule 15(1) of the CENVAT Credit Rules read with Section 11AC of the Act. The Commissioner allowed CENVAT Credit of service tax of Rs.1,13,18,145/- on input service availed through ISD invoices and dropped the proceedings against the same under the said show cause notices. Being aggrieved to the extent the order has disallowed CENVAT Credit availed on capital goods and inputs and confirmed duty demands, interest and imposed penalties, the appellant has preferred the appeal being Appeal No. E/75784/2017. 2.3. Being aggrieved by the part of the said adjudication order dropping the demand of credit availed on input service, Revenue has preferred an appeal being Appeal No. E/75769/2017. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e findings in the impugned order. 5. Heard both sides and perused the appeal documents. 6. We observe that the issue involved in all these appeals is whether credit of inputs, input services and capital goods used in captive mine of the appellant, Bolani Mines has been correctly availed by the appellant at its Durgapur Steel Plant and correctly utilised in or in relation to manufacture of dutiable final products therein (first two appeals ) and whether the CENVAT Credit availed and utilised by the appellant against the ISD documents issued by the Bolani Mines was legal and valid and whether Bolani Mines can be termed as Input Service Distributor under Rule 2(l) of the CENVAT Credit Rules. 6.1. We find that the issues involved is no more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of SAIL and thus bears an integral link to steel plants. We observe that the input services like security service, 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As the issue involved in all the three appeals filed by the appellant are the same, we observe that the ratio of these decisions are squarely applicable in these cases. Thus, by following the decisions in appellant's own cases, we hold that the credit disallowed along with interest and the penalties imposed in the impugned order are not sustainable and accordingly, we set aside the same. 6.3. As the CENVAT Credit availed and utilised by the appellant against the ISD documents issued by the Bolani Mines are found to be legal and valid, we hold that there is no merit in the department's appeal. Accordingly, the department's appeal is rejected. 7. In view of the above findings, the appeals filed by the appellants /SAIL are allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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