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TMI Blog2012 (10) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case are that respondents are engaged in the manufacture of iron and steel products falling under chapter 72 and 73 of CETA, 1985. They are also availing CENVAT Credit on inputs and capital goods in terms of CENVAT Credit Rules, 2004. The appellant availed CENVAT Credit of Rs.18,54,000/- in respect of duty paid on 700 HP Diesel Locomotive falling under chapter 76 of CETA, 1985. The department disallowed the CENVAT Credit. The respondents challenged the same before Commissioner (Appeals), who allowed the credit and appeal of the respondent. Aggrieved by the same Revenue is in appeal. 3. Revenue has filed this appeal on the ground that the Diesel Locomotive Engine is not capital goods since it is classified under chapter 86 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive for handling/carrying the torpedo ladle car. 4.3 So far as Hon'ble Supreme Court s decision in the case of Vikram Cement relied upon by the department, the contention of the respondent is that the subject matter of dispute in the said case was the place of use of item and not the nature of use of item in dispute. Therefore the ratio of the said decision cannot be applied to the present case especially when there are decisions of various High Courts. 5.1 We have carefully considered the submissions and perused the record. The ld. Commissioner (Appeals) in the impugned order has found as under :- 7. It is seen that the transportation of molten iron from blast furnace conarc furnace and thereafter to the pig casting machine is an essent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this, I hold that diesel locomotive is an accessory to goods falling under chapter 84, such as blast furnace, conarc furnace and pig casting machine and is thus capital goods. The appellant had correctly availed the cenvat credit of the duty paid on diesel locomotive. 8. The appellant have also asserted that the use of diesel locomotive in carrying molten metal from blast furnace to conarc furnace and then to pig casting machine is part of the chain of manufacturing processes. There can be no doubt that this is so the case. So also bringing raw materials, like coal and iron ore, to the furnace and to carry empty wagon in the factory is also part of the manufacturing activity. When that is so, any goods used in relation to the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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