2017 (7) TMI 52

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....ed availment of Cenvat credit in respect of duty paid on dumpers classifiable under chapter heading 87 as inputs which were used for transportation of limestone from the captive mines to crushers/hoppers which are installed inside the factory. The appellant also stated that credit in respect of dumpers may be allowed to them as input under Rule 2 (k) of Cenvat Credit Rules, 2004. 3. Vide and another letter dated 12/03/2008, the appellant also claimed Cenvat credit in respect of duty paid on locomotive engines falling under Chapter Heading No.86 used for hauling the inputs/raw material from the exchange yard to the place of manufacture of clinker/cement in their factory and also claimed that credit in respect of locomotive engine may be a....

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....auling of railway wagon loaded with cement manufactured by them to the point of exchange yard. Considering the definition under Rule 2 (k) of Cenvat Credit Rules, 2004 readwith Rule 2 (a) definition of capital goods, the learned Commissioner found that only in case of those goods which are used in or in relation to the manufacture of final goods within the factory of production can be treated as inputs. On the other hand, capital goods have been specifically defined to be capital goods, only for all goods falling under Chapter 82, 84, 85, 90, Heading number 68.02, 6801.10 of the First Schedule to the Central Excise Tariff Act. Further observed that dumpers falling under Chapter Heading No.87 and locomotive engine falling under Heading No. 8....

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....her have also been handled by making use of dumpers and tippers. Further, Hon'ble Supreme Court in the case of CCE Vs. Rajasthan State Chemical Works reported in 2002 - TIOL - 66 - SC - CX - LB observed that the processing and handling of raw materials is also in or in relation to manufacture, if integrally connected with further operation leading to manufacture of goods. Accordingly, dumpers tippers which are used within the factory will be entitled to Cenvat credit as capital goods. So far the issue of credit on locomotive engine is concerned, the learned Counsel placed reliance on the coordinate Bench ruling of this Tribunal in the case of CCE, CUS & ST, BBSR - I Vs. Bhushan Steel Ltd. reported in 2012 (286) E.L.T. 745 (Tri. - Kolkata), ....