TaxTMI 
TaxTMI 
2019 (2) TMI 1027
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....ted 05.05.2008 denied CENVAT Credit of RS.3.99 crores availed on rails, locomotives, railway material etc. availed during the period from April, 2007 to Feb, 2008 2. The Ld. Advocate appearing on behalf of the appellant submits that the issue regarding admissibility of CENVAT Credit availed on rails and railway material is now settled by the Hon'ble Supreme Court by its judgment in the case of Jayaswal Neco Limited Vs. CCE, Raipur- 2015 (319) ELT 247 (S.C). It is submitted that the Hon'ble Supreme Court on the identical issue has held that the credit will be available as the goods in question will be considered as used in or in relation to the manufacture of the final products. The Ld. Advocate further submitted that the Tribunal has con....
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....cts, etc. The use of the aforesaid items for the said purpose is also admitted in the impugned order. The department itself admits as is evident in their letter dated 10.01.2008 (page 24 of appeal paper book) that these items are used for transportation of the materials within the factory for the purpose of manufacture of final products. 6. We have noted that the similar issue has been decided by the Hon'ble Supreme Court in the case of Jayaswal Neco ( Supra) wherein while considering the admissibility of the railway material used for handling raw material and process goods the Apex Court has held as under:- "14. Applying the aforesaid test to the facts of this case, it is apparent that the use of railway tracks is related to the actu....
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....enditure on laying these railway tracks is incurred by the appellant is for transporting hot metal in ladle placed on ladle car from blast furnace to pig casting machine through ladle car where hot metal is purred into pig casting machine for manufacture of pig iron. It is clear from the above that the uses of railway 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. 18. We find from the order of the Commissioner that in spite of taking note of the aforesaid use of the railway tracks and accepting the same as correct, the Commissioner denied ....
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....or indirectly for producing or processing the goods or for bringing about any change for the manufacture of the final product. We have already pointed out that the aforesaid conclusion of the Commissioner is not only factually incorrect and perverse but legally unsustainable as well. 20. Resultantly, we set aside the order of the Commissioner as well as of CEGAT insofar as it pertains to item "railway track material used for handling raw materials, process goods" and hold that the appellant has rightfully claimed for Modvat Credit in respect of this item which credit is wrongly reversed by the authorities below. To that extent, order of the Commissioner as well CEGAT is set aside and the present appeal is allowed in the aforesaid terms."....