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2016 (12) TMI 840 - CESTAT NEW DELHIDenial of CENVAT credit - PSC sleepers, railway construction materials like fish plates, elastic rail clips, fish plates, fish bolts, nuts, lighting structures, High Mast Light, HPSV flood light fixtures, tubes and glasses - denial on the ground that these will not fall under the definition of capital goods as they were not used for producing or processing any dutiable items - Held that: - these railway lines created by using these materials were exclusively used by the appellants for movement of the raw materials, processed materials, etc. in the course of manufacture of dutiable final products. The railway track is part and parcel of material handling system integrally connected with the production on movement of dutiable goods. We note that the Hon’ble Supreme Court in Jayaswal Neco Ltd. [2015 (4) TMI 569 - SUPREME COURT] examined similar sets of facts and allowed credit under the erstwhile Central Excise Rules, 1944. Lighting equipments, fittings and fixtures - denial on the ground that these are mounted on civil structures and become part and parcel of such civil structures - Held that: - these items are classifiable under the eligible category of Chapters 84, 85 and 9405 of the Tariff and their usage has not been disputed in an industrial operations involving steel production. Admittedly, 24 hours illumination of shop floors is essential requirement and as such, the role of these High Mast Lighting Equipment has to be recognized in the process of manufacturing activity - credit allowed. Appeal allowed - credit allowed - decided in favor of assessee.
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