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2018 (9) TMI 633 - AT - Central ExciseCENVAT Credit - input/input services - manufacture of Cement and Cement Clinker - Railway track, material & works contract services etc. - Consultancy and Manpower Supply Services used in the laying of Railway Lines - Held that:- The definition of ‘capital goods’ as well as ‘inputs’ mandate the usage of goods within the factory. It has been held in a catena of judgement that where pipelines, rope-ways and other material handling equipment and their parts are partially located within factory and partially outside, then the portion which is outside the factory has to be treated as an extension of the portion which is inside the factory. Accordingly, the condition of ‘used in factory’ gets satisfied and the Cenvat Credit is admissible - the railway track laid by the Appellant (which connects the railway siding outside the factory with the siding inside the factory) shall have to be treated to have satisfied the condition of ‘used in the factory’. The issue about works contract services availed for laying down the Railway line is also no more res-integra in view of the judgement in the case of The India Cement Ltd. v. CCE, Chennai-I [2018 (6) TMI 581 - CESTAT CHENNAI], wherein it was held that The laying of railway tracks does not fit into sub-clause (a) or (b) of exclusion Part (A) in the definition of input service. Thus the disallowance of credit, alleging that these services are excluded from the definition, is without any legal basis. Appeal allowed - decided in favor of appellant.
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