2016 (12) TMI 840

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ling cenvat credit on various inputs, capital goods and input services in terms of Cenvat Credit Rules, 2004. The appellants have an integrated steel plant comprising of various mills, blast furnace, shop floors to enable production, internal transportation of various raw materials and dispatch of manufactured items through railway lines. The dispute in the present appeal relates to cenvat credit availed on PSC sleepers, railway construction materials like fish plates, elastic rail clips, fish plates, fish bolts, nuts, lighting structures, High Mast Light, HPSV flood light fixtures, tubes and glasses. The impugned order denied the credit on these items on the ground that these will not fall under the definition of capital goods as they were....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....thorities. 5. We have heard both the sides and examined the appeal records including written submissions. 6. On the first issue regarding eligibility of the cenvat credit on railway track materials used and installed inside the factory premises, we note that these railway lines created by using these materials were exclusively used by the appellants for movement of the raw materials, processed materials, etc. in the course of manufacture of dutiable final products. The railway track is part and parcel of material handling system integrally connected with the production on movement of dutiable goods. We note that the Hon'ble Supreme Court in Jayaswal Neco Ltd. (supra) examined similar sets of facts and allowed credit under the erstwhil....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ESTAT-DELHI), Jindal Steels and Powers Ltd. 2015-TIOL-2115 (CESTAT-Delhi) and Ultra Tech Cement Ltd. 2016-TIOL-1967(CESTAT-Hyderabad). 7. Regarding admissibility of credit on lighting equipments, fittings and fixtures, we note that these items are classifiable under the eligible category of Chapters 84, 85 and 9405 of the Tariff and their usage has not been disputed in an industrial operations involving steel production. Admittedly, 24 hours illumination of shop floors is essential requirement and as such, the role of these High Mast Lighting Equipment has to be recognized in the process of manufacturing activity. Reasoning followed by the Original Authority that these light fittings become part of civil structures and hence cannot be al....