TMI Blog2017 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... are part and parcel of the facility for transportation provided inside the factory premises - the appellant is eligible for credit availed on MS items, angles etc. Credit in tiles - Held that: - The credit availed on tiles i.e. ₹ 13,076/- is disallowed and the same along with interest as well as equal amount of penalty to this amount of ₹ 13,076/- is confirmed. Appeal disposed off - decided partly in favor of assessee. - E/524/2009-SM - Final Order No. 31221 / 2016 - Dated:- 17-11-2016 - Ms. Sulekha Beevi C.S, Judicial Member Shri G. Prahlad, Advocate For the Appellant Shri Nagaraj Naik, Deputy Commissioner(AR) For the Respondent ORDER Per Sulekha Beevi C.S The appellants are engaged in the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f sheds and support structures which is factually wrong. He also submitted that railway sidings are used by appellant for inward transportation of inputs and outward transportation of finished goods connecting the factory to the railway station. That without such railway tracks, the transportation of bulk quantity of goods is not possible and therefore it is integrally connected with the process of manufacture. The learned counsel fairly conceded that an amount of ₹ 13,076/- is availed by the appellant on ceramic tiles which is not eligible for credit. The appellant placed reliance on the following judgments to contend that the credit on subject items used for fabrication of capital goods / parts / accessories / components as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant erection, cement mill etc. which are capital goods used in manufacture and integrally connected with the process of manufacture. The Commissioner has observed that these are sheds used for storage of inputs, like chemicals etcthe definition of capital goods include storage tanks. Such storage of inputs, raw material, finished product, waste etc. is necessary to carry out the activity of manufacture. The Chartered Engineer certificate certifies that the capital goods manufactured using the subject items are essential for carrying out manufacturing activity of the appellant. 5. Another strong objection raised by the Department is with regard to the credit availed on railway sidings which are laid outside the factory premises. When t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2005(183) ELT A159 (SC) whereby the Hon ble Apex Court maintained the decision passed by the Tribunal. In Jaypee Bela Plant Vs. CCE, Bhopal [2005(180) ELT 31 (Tri. Del.)], the issue was whether the pipeline used for drawing water from reservoir situated 5-6 kms away from the factory for manufacturing of final goods within the factory was eligible for credit. The issue was answered in favour of the assessee. 7. From the discussions and observations made in the above judgments as well as the facts presented before me, I am of the view that the credit availed on railway sidings is eligible. It has also to be pointed out that without the railway sidings being laid outside the factory so as to connect the factory with a railway st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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