TaxTMI 
TaxTMI 
2016 (9) TMI 1127
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....d and a penalty of Rs. 10 lakhs has also been imposed on the appellant. 1.1 The matter concerns with the admissibility of cenvat credit on dumpers and parts thereof, which was treated by the appellant as an "input" under Rule 2 (k) of Cenvat Credit Rules, 2004. 1.2 The Adjudicating Authority viz. Commissioner has disallowed the cenvat credit on dumpers and parts thereof saying that in case of the manufacturer, goods falling under Chapter 87 , whereunder as per the impugned order the dumpers are classified as motor vehicles under Tariff Item No.87041010, are excluded from the purview of capital goods as defined under Rule 2 (a)(A) of CCR and they are neither "inputs" under Rule 2 (k) of CCR, 2004. 2. The appellant ....
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....facture of final products and thus qualifies as an "input". In the appellant's own case i.e. Aditya Cement Vs. Union of India - 2008 (221) ELT 362 (Raj), the Hon'ble Rajasthan High Court observed that railway track material has been used by the assessee for transporting coal, for use as fuel. (iv) In the case of Singh Alloys & Steel Ltd. Vs. Asst. CCE- 1993 (66) ELT 594 (Cal.), Hon'ble Calcutta High Court held that the definition of inputs is very wide and that the only relevant question is whether these are used in or in relation to the manufacture. (v) Alternatively, dumpers are also covered by the definition of capital goods under Rule 2(a)(A) of the Cred....
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....p; cited by both the sides. 5. The Revenue has denied the cenvat credit on the dumpers and parts thereof saying that these items are neither inputs nor capital goods for the purpose of availing cenvat credit. However, the appellant argues that the items in question are covered within the definition of "inputs" given in Rule 2 (k) of the Cenvat Credit Rules, 2004. The appellant's contention is that the dumpers are material handling equipments used for transportation of limestone from mining area to the crusher which is further used for the manufacture of cement; therefore, the dumpers are to be treated as used in or in relation to the manufacture of final products and thus, qualifies as an "input". The appellant has also....
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....n the proceedings, they are specially designed for industrial purpose and the sic operate within narrow scope of factory premises. In the case of Bhusan Steel Ltd. (supra), this Tribunal held that diesel locomotive torpedo ladle car carrying molten metal not only enhances the effectiveness, but without it the handling and in turn production of finished goods would not be possible. The Tribunal upheld the lower authority's order holding that diesel locomotive as accessory of capital goods. 9. In the case of Tata Steels Ltd. (supra), the Tribunal held that coke t....
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....nion that the principle emerging from decisions of the Hon'ble Supreme Court and of this Court applies to the present case also. In the light of the aforesaid principle, if we take into account the use of iron and steel ingot as parts and components of its machinery used in manufacturing Cement, Railway Track materials needed for transporting fuel as essential for manufacturing in the plant, it is clear that so far as the items of iron and steel are concerned, they are used as providing parts and components of the plant and machinery and becomes essential elements of the machine itself without which the machinery would not be functioning smoothly and properly. Therefore, the direct involvement of those parts and components which are essenti....