2018 (2) TMI 213

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....Govindarajan, AC (AR) - For the Respondent ORDER Per: Bench The appellants are engaged in the manufacture of iron and steel and are registered with the Central Excise department. They are availing the facility of cenvat credit on capital goods, inputs etc. The appellants were issued a show cause notice dt. 1.4.2009 alleging inter alia, that they had availed credit on capital goods / pipel....

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....at Metturdam. Accordingly, they had undertaken the contract of laying pipelines for drawing water from river Cauvery to their factory; that since pipelines are capital goods and are used in relation to the manufacturing activity, the denial of credit is unjustified. He relied upon the decision in the case of CCE Chennai Vs Pepsico India Holdings Ltd. - 2001 (130) ELT 193 (Tri.-Chennai) and Jaypee ....

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....pelines laid outside the factory which is issued for drawing water from Cauvery river. The issue stands covered in the case of Pepsico India Holdings Ltd. as well as Jaypee Bela Plant (supra). The relevant part of the decisions are reproduced as under : "6. We have considered the submissions made by both the sides and find that the pipline can be considered in the factory in this case, it would....

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.... Pepsico India Holding Ltd. (supra). It is immaterial whether distance is 200 m or 5 km when one end of the pipeline is within the factory and the same is being utilised for bringing water from reservoir to the factory for the manufacture of finished goods within the factory. In view of this, the appellants are entitled for the Modvat credit on the pipes and tubes used for drawing water from the r....