TaxTMI 
TaxTMI 
2018 (7) TMI 517
X X X X Extracts X X X X
X X X X Extracts X X X X
....chased rails and railway sleepers, etc. for laying railway track from Kandra railway siding to the unloading point inside the factory for inward transportation of raw materials and also outward transportation of finished goods. The appellants treated the impugned goods as input and claimed cenvat credit as per Rule 2(k) read with Rule 3 of the Cenvat Credit Rules, 2004. The Department is of the view that the impugned goods are not inputs as they have not been used in the manufacture of finished goods, and therefore, the appellant was not eligible to avail cenvat credit on the impugned goods. Further, it is the case of the Department that since the impugned goods were used to build a railway track which ran from a point outside the factory t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er cenvat credit on rails and rail sleeper is available under the category of capital goods or inputs. 6. I find that in the case of Aditya Cement (supra), the Hon'ble Rajasthan High Court had held that the railway track along with locomotive used by a cement factory for the purpose of transporting its material is a conveyor system and accordingly, the assessee was entitled to benefit of credit. It has been held as under: "20. So far as the claim to Railway Track material is concerned, it is common ground that the same has been used for transporting of coal and product of cement. Apparently, though the coal is not end product of the appellant but used as essential adjunct of plant for feeding it with fuel, the essential element of product....
X X X X Extracts X X X X
X X X X Extracts X X X X
....case, the manner in which railway track materials have been used by the appellant was explained by the appellant before the Commissioner and veracity thereof was accepted by the Commissioner. Therefore, without any fear of contradiction, we may note the exact process that is involved : "These railway tracks used in transporting hot metal in ladle placed on ladle car from blast furnace to pig casting machine through ladle car where hot metal is poured into pig casting machine for manufacture of pig iron. Secondly the system also helps in taking hot pigs from pig casting machine to pigs storage yard by the big wagon where hot pig iron are dumped for cooling and making ready for dispatchers. This Railway tracks are also used in handling of r....