TaxTMI 
TaxTMI 
2016 (11) TMI 930
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....ellants wrongly availed CENVAT credit of duty amounting to Rs. 22,94,942/- on goods viz. crane rails, rails etc. as inputs. The Department entertained a view that these items are not covered by the definition of inputs as per Rule 2(k) of CENVAT Credit Rules, 2004. A show-cause notice was issued to the appellants proposing to deny the credit and also for recovery of the same along with interest and for imposition of penalty. After due process of law, the adjudicating authority confirmed the demand, interest and penalty. In appeal, the Commissioner(Appeals) upheld the same. The appellants are thus before the Tribunal. 2. On behalf of the appellant the learned counsel Shri Karana Talwar submitted that the rails were used within the factory....
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....rent stand. He also adverted to the observation made by the original authority in para 15 of the OIO. The original authority has stated that the appellants though have availed credit under the category of inputs are thereafter taken a contention that they are eligible for credit under the category of capital goods. He submitted that the credit has been disallowed as the goods do not fall within the definition of inputs and therefore disallowance of credit is legal and proper. 4. I have heard the rival submissions made before me. The foremost issue to be considered is whether the appellant having availed credit under the category of inputs can content that they are eligible for credit under the category of capital goods. The said issue st....
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....he Tribunal in the case of steel Authority of India Ltd. vs. CCE, Raipur [2014(311) ELT 709 (Tri. Del.)] has categorically held that though the initial claim may be under the category of inputs, the assessee cannot be denied credit of eligible under capital goods. Department does not dispute that the rail, rail material etc. are used to facilitate the transportation of goods using cranes, lifts etc. without which the manufacturing activity cannot be carried out. In such circumstances, I consider that the claim put forward by appellants under the category of capital goods in their reply to show-cause notice yields merit. 6. The next issue to be addressed is whether the appellant is eligible for credit on the rails, materials used in railw....
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....t a required height Crane rails are used for long travel of EOT crane; Crane Columns function to transfer the handled load to the ground when overhead crane is working by combined action of axial force and bending moment. Crane Surge Girder & Crane Auxiliary Girder are used to hold crane girder in position properly while crane is working. In view of their use, all these goods are essential accessories for EOT crane installed in respondent's factory as EOT crane cannot perform without them. .... ..... .... They are essential 'accessories' in the respondent plant. Therefore, all the 'impugned goods' as mentioned above are covered in the scope of term 'accessories' in the definiti....
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....om blast fumace to pig casting machine through ladle car where hot metal is poured into pig casting machine for manufacture of pig iron, Secondly the system also helps in taking hot pigs from pig casting machine to pigs storage yard by the big wagon where hot pig iron are dumped for cooling and making ready for dispatchers. This Railway tracks are also used in handling of raw materials at wagon tippler to stacker reclaimer where stacking and reclaiming of raw material is taken place and required quantity is conveyed for further processing at stock house. 16. It reflects that the appellant has installed railway tracks within the plant which is a handling system for raw material and processed material. 17. The aforesaid process squarely....