Per Mr. VASA SESHAGIRI RAO

This appeal arises out of Order-in-Original No. 05/2017 dated 27.04.2017 passed by the Commissioner of Central Excise, (Audit), Coimbatore (hereinafter referred to as the “Impugned Order”), whereby CENVAT credit of Rs.3,17,74,936/- availed by M/s. Sree Rengaraj Ispat Industries Pvt. Ltd. Erode (hereinafter referred to as the “Appellant”) on CVD paid on imported steam coal has been disallowed along with interest imposing equal penalty. The Appellant, engaged in manufacture of iron and steel products, imported steam coal for captive use.

2. The facts, in brief, are that during the period from 01.04.2013 to 31.10.2015, the Appellant paid Additional Duty of Customs (CVD) at the concessional rate of 2% on imported steam coal under Notification No. 12/2012-Cus and availed CENVAT credit of the same under Rule 3 of the CENVAT Credit Rules, 2004. On verification of records, the Department formed a view that concessional excise duty applicable to indigenous coal under Notification No. 1/2011-CE and Notification No. 12/2012-CE, being subject to the condition of non-availment of credit, would equally apply to imported goods, and accordingly issued Show Cause Notice d