TMI Blog2015 (11) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... e as capital will not be available to the appellant. - disputed goods are also used for movement finished goods upto the destination point for sale. Thus, the activities carried out in the factory of the appellant with the help of locomotive, has a nexus with the manufacturing process, and as such, as per the clear and unambiguous definition of input, the locomotive cannot be denied the cenvat benefit. The case of the appellant gets support from the decision of larger bench of this Tribunal in the case of Banco Products (India) Ltd, wherein it has been held that Plastic crates used for transporting/ storing of goods in the factory will be considered as input for the purpose of Modvat credit, because in absence of proper storage and efficien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansportation of raw materials and finished goods within the factory of production. According to him, without continuous and timely supply of raw material to the plant, the manufacture of cement would not be commercially viable. He further submits that locomotive used by the appellant for transportation of raw materials and finished goods are in relation to manufacture of final product. Thus, according to the Ld. Advocate, the central excise duty paid on the locomotive is eligible for cenvat credit to the appellant for utilization towards clearance of the final product. To justify his above stand, the Ld. Advocate has cited the judgment of Honble Supreme Court in the case of Jayaswal Neco Ltd. vs CCE Raipur, reported in 2015-TIOL-70-SC-CX a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand, the Ld. Jt. CDR cited the decision in the case of Hindustan Zinc Ltd. vs Commissioner of Cus. C. Ex Jaipur, reported in 2009 (235) ELT 289 (Tri. Del). 5. Heard the Ld. Counsel for both the sides and perused the records. 6. The short issue involved in the appeal for consideration by this Tribunal is, as to whether, the locomotive should be considered as an eligible item for the purpose of taking cenvat credit. The term Capital Goods has been defined in Rule 2(a)(A) of the Cenvat Credit Rules, 2004. As per the definition, goods falling under chapter 82, 84, 85, 90 and the components, spares and accessories of the goods of the said chapters are considered as capital goods, on which the assessee is permitted to take cenvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the appellant gets support from the decision of larger bench of this Tribunal in the case of Banco Products (India) Ltd, wherein it has been held that Plastic crates used for transporting/ storing of goods in the factory will be considered as input for the purpose of Modvat credit, because in absence of proper storage and efficient movement of gods under the cover of plastic crates, the manufacturing activity will be affected. In view of the principles decided by the Larger Bench of the Tribunal, use of locomotive by the appellant for the intended purpose within the factory, will qualify for availment of cenvat credit under the head input. 8. In view of foregoing, the impugned order is set aside and the appeal is allowed in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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