2017 (3) TMI 356

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....cts in the registration of the appellant; that railway yard separated by public roads was not the appellant's sole property; that railway yard was also used by other manufacturers in the vicinity. 2. The second dispute concerns input services utilized towards construction of rest rooms and provision of amenities to railway personnel in the railway yard. Denial of these credits have been upheld in the impugned order on the grounds that the yard was situate outside the factory premises and that the ultimate purpose of the same was for providing rest and relief to the employees. Period involved in dispute is September 2001 to November 2011. The amount involved in the first dispute i.e. denial of cenvat credit of duty paid on capital goods....

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.... railway line required for laying sliding will be licenced to the appellant; that the land outside the railway boundary shall be acquired by appellant. 3.2 With regard to the second dispute regarding input services used in construction of rest rooms, he submits that these are actually input services credit availed by them which are not for construction of rest rooms but in connection with electrical work and fittings in the railway yard. He submitted that although they are rest room amenities for the railway staff, they have not claimed credit. 4. On behalf of department, Ld. A.R. Shri Jude Joseph submitted that denial of capital goods credit in respect of jetties, pipelines etc. has been upheld by Courts. Ld. A.R reiterated the correctne....

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....ed within plant transporting raw material directly to the machine has been held to be eligible 'capital goods' for availing cenvat credit. However, in all these decisions, the railway tracks are within registered factory premises of the manufacturer. This is not the case here. 7. No doubt the facility of availing credit of duty suffered on inputs/capital goods is a beneficial legislation to mitigate cascading effect of taxation. But the law is very clear that such inputs or capital goods should be received and used in the factory of manufacture of final products. Thus, to satisfy the definition of "capital goods" as per Rule 2(a) of the Cenvat Credit Rules, 2004 the same have to be used in the factory of the manufacturer of the final p....