2016 (12) TMI 1714

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....stoms, Excise, & Service Tax Appellate Tribunal, Principal Bench, New Delhi, (hereinafter called 'the Tribunal') in Appeal No. E/1942/2010 whereby the appeal filed by the Respondent-Assessee was allowed permitting it to take Cenvat credit for the inputs in the nature of Cement, MS CTD Bars, MS Rounds, TMT, Plates MS Angles, MS Channels, Beams and Rails etc. used by the Assessee for manufacture of machines/machineries installed in the factory. 3. We, vide a separate judgment dated 14.12.2016 delivered in Tax Case No. 46 of 2016, have dealt with this question in detail and have held that the Assessee is entitled to get the benefit of Cenvat credit in respect of the aforesaid items, holding as follows: "7. We, at this stage....

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....like M.S. Angles, M.S. Plates, M.S. Joists and Channels were used for manufacturing of certain essential parts of the factory which are capital goods and since they are essential parts of the factory, they satisfy the twin tests of being capital goods as well as the user test. In fact, this question is no longer res integra. In Jayaswal NECO Ltd. vs. Commissioner of Central Excise, Raipur, 2015 (319) E.L.T. 247 (S.C.), the Apex Court dealing with the Rule 57Q of the Central Excise Rules, 1944, held as follows: "12. In the process, the court also explained that there is no warrant for limiting the meaning of the expression "in the manufacture of goods" to the process of production of goods only. In the opinion of the court, the expr....

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....ilway tracks inside the plant not only form the process of manufacturing, but it is inseparable and integral part of the said process inasmuch as without the aforesaid activity for which railway tracks are used, there cannot be manufacturing of pig iron." 9. In the above case, the issue before the Supreme Court was whether a railway track constructed to carry coal from the coal mines to the thermal plant would fall within the definition of input or not. The Apex Court held that the items used for construction of the railway track were inputs because carriage of coal to the plant was an essential part of the process of manufacture. If the input used in construction of a railway track is input, we fail to understand the argument of t....