TMI Blog2016 (9) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... envat credit. - Decided in favour of appellant with consequential relief - Excise Appeal No.2008/2008-EX(DB) - Final Order No.53330 - Dated:- 31-8-2016 - Mr. Justice (Dr.) Satish Chandra, President and Mr. Ashok K. Arya, Member (Technical) Shri Amit Jain, Advocate for the appellant. Shri Yogesh Agarwal, DR for the respondent. ORDER 1. The appellant viz. Aditya Cement Ltd. is in appeal against the order No.36/2008/CE/JP-II dated 21.07.2008 passed by the Commissioner of Central Excise, Jaipur-II whereunder several credits amounting to ₹ 2,02,68,866/- have been disallowed and a penalty of ₹ 10 lakhs has also been imposed on the appellant. 1.1 The matter concerns with the admissibility of cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rks-1991(55) ELT 444(SC). (2) J.K. Cotton Spg. Wvg. Mills Co.Ltd.-1997(91)ELT 34 (SC) (3) Union Carbide India Ltd. Vs.CCE-1996(86)ELT 613(T-LB) (4) CCE Vs. Tata Engg. Locomotives Co.Ltd.-2003(158) ELT 130(SC). (iii) The dumpers have been used for transportation of limestone from mining area to the crusher, situated within the mining area, which is further used for manufacturing of cement, therefore, dumpers are to be treated as used in or in relation to manufacture of final products and thus qualifies as an input . In the appellant s own case i.e. Aditya Cement Vs. Union of India - 2008 (221) ELT 362 (Raj), the Hon ble Rajasthan High Court observed that railway track material has been used by the assessee for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 751(T-Bang.) (3) 2003(153)ELT A-94 (SC). 3. Revenue has been represented by ld. AR, Shri Yogesh Aggarwal. The ld. AR has reiterated the findings given in the impugned order . 4. We have carefully considered the facts on record and the submissions along with the case laws cited by both the sides. 5. The Revenue has denied the cenvat credit on the dumpers and parts thereof saying that these items are neither inputs nor capital goods for the purpose of availing cenvat credit. However, the appellant argues that the items in question are covered within the definition of inputs given in Rule 2 (k) of the Cenvat Credit Rules, 2004. The appellant s contention is that the dumpers are material handling equipments used for tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cenvat credit. CESTAT in this case in respect of such vehicles observes as under:- 8. They are not transfer vehicles or trucks for common public transport of goods. As admitted in the proceedings, they are specially designed for industrial purpose and the sic operate within narrow scope of factory premises. In the case of Bhusan Steel Ltd. (supra), this Tribunal held that diesel locomotive torpedo ladle car carrying molten metal not only enhances the effectiveness, but without it the handling and in turn production of finished goods would not be possible. The Tribunal upheld the lower authority s order holding that diesel locomotive as accessory of capital goods. 9. In the case of Tata Steels Ltd. (s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case also. In the light of the aforesaid principle, if we take into account the use of iron and steel ingot as parts and components of its machinery used in manufacturing Cement, Railway Track materials needed for transporting fuel as essential for manufacturing in the plant, it is clear that so far as the items of iron and steel are concerned, they are used as providing parts and components of the plant and machinery and becomes essential elements of the machine itself without which the machinery would not be functioning smoothly and properly. Therefore, the direct involvement of those parts and components which are essential to hold the machine become part and parcel of the machine itself. Such components and parts of the machine become ..... X X X X Extracts X X X X X X X X Extracts X X X X
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