IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, KOLKATA REGIONAL BENCH – COURT NO.1 (Arising out of Order-in-Original No.70/Central Excise/Pr.Commr./2018 dated

27.03.2018 passed by Commissioner of CGST & Central Excise, Ranchi)

M/s Atibir Industries Company Ltd. (Unit II)

(Bhorandiha, Post Office-Udnabad, Giridih-815301, Jharkhand)

Appellant VERSUS Commissioner of CGST & Central Excise, Ranchi (C.R.Building, 5A Main Road, Ranchi-834001)

Respondent APPERANCE :

Shri N.K.Chowdhury, Advocate & Shri R.P.Chowrasia, Authorised Representative for the Appellant Shri B.K.Singh, Authorised Representative for the Respondent CORAM:

HON’BLE MR.ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE MR.K.ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO.75254/2026 DATE OF HEARING : 03 FEBRUARY 2026 DATE OF PRONOUNCEMENT : 18 FEBRUARY 2026 Per Ashok Jindal :

The appellant is in appeal against the impugned order wherein the cenvat credit on H.R. Steels, H.R. Coils, Plates, Sheets, Cement and TMT Bars, Channel, Beam, Welding Electrodes etc., has been denied to the appellant for the period May, 2008 to August, 2010.

2. The facts of the case in brief are that the appellants were engaged in the manufacture of Iron & Steel products viz. Pig Iron (72012000), Sinter (77031000) etc. under Chapter Heading 72 of the Central Excise Tariff Act, 1985. The said inputs were procured prior to 07.07.2009 which were used in construction, fabrication, installation, manufacture and erection of capital goods and other equipments essential for the establishment of the Integrated Iron & Steel Plant consisting of Sinter Plant, Pillet Plant, Blast Furnace and other ancillary plants for use in the manufacture of their finished products. The appellants maintained proper books of accounts. The availment of credit was also reflected in the E.R.-I Returns. The first E.R.-I Return for the month of May, 2008 disclosed the accumulated availment of credit of Rs.2,89,33,878/- and continued filing E.R.-I Return till May, 2009 claiming total CENVAT credit of Rs.3,78,69,610/- on iron and steel items. No dispute was raised by the Department. In the return E.R.-1 for September, 2009 accumulated CENVAT credit on Cement and TMT Bar was disclosed as Rs.1,43,34,650/-. For the first time, vide letter dated 13.01.2010 requested for submission of documents on the strength of which the appellants had taken credit. The appellants thereafter submitted the details of the procurement of the said inputs and utilisation of the same supported by Charter Engineer's Certificate. The appellants were thereafter vide letter dated 11.02.2010 issued by the Superintendent asking the appellant to reverse the inadmissible credit of Rs.1,39,18,107/- availed on Cement and TMT Bras in terms of the amendment made in the Explanation-2 to 2(k) of the CENVAT Credit Rules, 2004 by Notification No. 16/2009-CE(NT) dated. 07.07.2009. The appellant submitted reply vide letter dated 18.02.2010. On persuasion of the Department, the appellant reversed the credit on Cement and TMT Bar under protest and reflected the same in the E.R.-I Return and RG-23A Part-II. The Assistant Commissioner thereafter visited their factory on 17.09.2010 when the appellants had provided the documents viz. Purchase Register, RG23A Part-II etc. vide letter dated 17.09.2010.

2.1 The appellant was issued a Show Cause Notice dated 07.10.2010 on the basis of the Notification No.16/2009-CE(NT) dated 07.07.2009 as Explanation-2 to Rule 2(k) of CENVAT Credit Rules, 2004 after the Larger Bench's decision in the case of Vandana Global Limited -Vs-CCE, Raipur, directing the appellants to show-cause as to why CENVAT credit amounting to Rs.5,17,66,172/- should not be disallowed and recovered from the appellants under Rule 14 of the CENVAT Credit Rules, 2004. Charging of interest and imposition of penalty were also proposed. It was alleged in the said Show Cause Notice that the appellants had contravened the provisions of Rules 2(k), 3 & 4 of the CENVAT Credit Rules, 2004 suppre