IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH : KOLKATA REGIONAL BENCH – COURT NO. 1 Excise Appeal No. 75489 of 2022 (Arising out of Order-in-Appeal No. 28/RAN/2022 dated 16.03.2022 passed by the Commissioner (Appeals) Central Goods & Service Tax & Central Excise 2^nd & 3^rd Floor, Grand Emerald Building Between Road No. 1 & 2, Ashok Nagar Ranchi-

834002)

Commissioner of Central GST & Central Excise, : Appellant Ranchi

2^nd & 3^rd Floor, Grand Emerald Building Between Road No. 1 & 2, Ashok Nagar Ranchi-834002 VERSUS M/s. Bihar Foundry & Castings Ltd. : Respondent Ramgarh Industrial Area, Marar, Ramgarh, Jharkhand-829117 APPEARANCE:

Shri S. Dutta, Authorized Representative for the Appellant Shri Karthik Kurmy, Advocate for the Respondent CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

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

FINAL ORDER NO.75297/2026 DATE OF HEARING / DECISION: 18.02.2026 Order: [PER SHRI ASHOK JINDAL]

The Revenue has filed this appeal.

2. The facts of the case are that the respondent is engaged in the manufacture of sponge iron, steel ingots and billets. For the manufacture of sponge iron, the respondent uses iron ore, Coal Steam Coal) and dolomite, as inputs. During the period from 2015-16 to 2016-17, the respondent has procured coal from outside the territory of India / registered importers for use in or in relation to manufacture of sponge iron and has claimed credit of CVD paid, of Rs.1,54,65,803/-. The CVD was paid at a concessional rate of 2% under Customs Tariff Notification No. 12/2012-Cus. [Sl. No. 123] dated 17.03.2012, as amended by Customs Tariff Notification No. 12/2013-Cus. dated 01.03.2013.

Pursuant to the audit for the impugned period, on 06.06.2017 to 08.06.2017, a Spot Memo was issued on 22.06.2017, wherein it was observed that the respondent had availed CENVAT Credit of CVD paid at the concessional rate of 2% on imported coal, which is not admissible as per Rule 3(1)(i)(a) of the CENVAT Credit Rules, 2004.

3. It was also observed therein that as per Sl. No. 67 of the Central Excise Notification No. 12/2012- C.E. dated 17.03.2012, the concessional rate of duty on coal was 1%, which was later revised to 2% by Central Excise Tariff Notification No. 16/2012-C.E. dated 18.07.2017 subject to the condition that no CENVAT Credit is taken.

4. Thereafter, a Show Cause Notice dated 14.02.2020 was issued, to deny CENVAT Credit to the respondent, for contravention of the provisions of Rule 3(1)(vii) of the CENVAT Credit Rules, 2004 read with Central Excise Tariff Notification No. 12/2012-C.E. dated 17.03.2012 inasmuch as the respondent had wrongly availed CENVAT Credit of Rs.1,54,65,803/- being CVD paid by them during the impugned period on imported coal.

5. The matter was adjudicated and CENVAT Credit was denied to the respondent vide Order-IN- Original No. 03/MP/ADC/RAN/2021. The said order was challenged before the Ld. Commissioner (Appeals), who, vide the impugned order, set aside the proceedings initiated against the respondent.

6. Aggrieved from the said order, the Revenue is in Appeal. The respondent has also filed their cross-

objection to the appeal filed by the Revenue.

7. The Ld. Authorized Representative appearing on behalf of the appellant-Revenue submits that as per Rule 3(1)(vii) of the CENVAT Credit Rules, 2004, CENVAT Credit of additional duty levied under Section 3 of the Customs Tariff Act is allowable if the same is equivalent to the duty of excise specified under the first schedule to the Central Excise Tariff Act, 1985; that the additional duty of Customs was paid at the concessional rate at the rate of 1%/2% by virtue of Notification No.12/2012-Cus. dated 17.03.2012, as amended by Notification No.12/2013-Cus. dated 01.03.2013.

8. It is his contention that the said payment of duty at the concessional rate does not fulfil the condition prescribed under Rule 3(1)(vii) of the said Rules, inasmuch as the quantum of the same should be equivalent to the duty of excis