TaxTMI 
TaxTMI 
2018 (2) TMI 6
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....e definition of capital goods. The learned Commissioner (Appeals) upheld the disallowance ordered by the adjudicating authority. Therefore, the appellants are before me. 2. Shri Rajesh Ostwal, learned Counsel appearing on behalf of the appellant submits that they have availed the credit on the capital goods under bona fide belief that it is the material handling equipment, therefore, it is necessary for the entire manufacturing plant. He alternatively submits that even if diesel locomotive is not covered under the capital goods, the credit is admissible as an input for the reason that the diesel locomotive is undisputedly used in or in relation to the manufacture of cement in the factory of the appellant. Therefore, the credit is admissi....
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.... another, the manufacturing cannot take place. In doing so, the diesel engine hauls the torpedo ladle cars containing molten metal. In Banco Products (India) Ltd. (supra), the Tribunal held that plastic crates, which are used for internal transportation of the raw material/semi-finished and finished goods from stores to processing machine and from one machine to another and to finished goods storage, are accessories. The term accessory has not been defined in the Cenvat Credit Rules, 2004. But the meaning of the term has been explained elaborately by the Supreme Court in M/s. Annapurna Carbon Industries v. State of Andhra Pradesh [AIR 1976 SC 1418] and M/s. Mehra Brothers v. Jt. Commercial Officer [1991 (51) E.L.T. 173 (S.C.)]. In both thes....
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....Banco Products (India) Ltd. (supra) and the Supreme Court decisions in Rajasthan State Chemical Works (supra) and Telco Ltd. (supra). In that view of the matter, diesel locomotive can as well be an input so as to come within its definition in the Cenvat Credit Rules, 2004." 5.2 From the above we find that ld. Commissioner (Appeals) has given clear and cogent findings. However, so far as his observation, The torpedo ladle car containing molten iron could have been manually handled from one place to another. But its effectiveness in carrying the molten iron without melting can be enhanced by use of diesel locomotive, is concerned we find that though ld. Commissioner (Appeals) has observed that the molten iron could have been manually....
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....regarding the use of MBC sleepers within the factory. It is used for transportation of raw material and finished product. The use as explained by the learned counsel makes it clear that these are essential and integrally connected to the process of manufacture. In addition, the judgments relied by the appellant and stated supra have held that credit is admissible on Railway tracks/sleepers used within the factory for transportation of raw materials and finished goods. Following the ratio laid in these judgments, I hold that the appellant has established a case on merits and that credit is admissible on MBC sleepers. 7. The appellant has also argued on the issue of limitation. They had disclosed the availment of credit in the ER-1 r....