TMI Blog2018 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Rajesh Ostwal, Advcoate for Appellant Shri A.B. Kulgod, Asstt. Commissioner (AR) for Respondent ORDER Per : Ramesh Nair The appellants have availed CENVAT Credit on Diesel Locomotive under capital goods as the same is used for conveyance of the raw materials and finished goods within the factory premises. The adjudicating authority denied the credit on the ground that the diesel locomotive is not covered under the definition of capital goods. The learned Commissioner (Appeals) upheld the disallowance ordered by the adjudicating authority. Therefore, the appellants are before me. 2. Shri Rajesh Ostwal, learned Counsel appearing on behalf of the appellant submits that they have availed the credit on the capital goods un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed the following order: - 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 to conarc furnace and thereafter to the pig casting machine is an essential part of manufacturing process. Without carriage of such molten metal from one place to another, the manufacturing cannot take place. In doing so, the diesel engine hauls the torpedo ladle cars containing molten metal. In Banco Products (India) Ltd. (supra) , the Tribunal held that plastic crates, which are used for internal transportation of the raw material/semi-finished and finished goods from stores to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnace 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 manufacturing activity become an input. This finds support from the Tribunal decision in Banco Products (India) Ltd. (supra) and the Supreme Court decisions in Rajasthan State Chemical Works (supra) and Telco Ltd. (supra) . In that view of the matter, diesel locomotive can as well be an input so as to come within its definition in the Cenvat Credit Rules, 2004. 5.2 From the above we find that l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no block for railway track was held as admissible for CENVAT Credit. In the said judgment, the Tribunal has passed the following order: - 6. I have considered the submissions made by either side. The issue is whether credit is admissible on MBC sleepers. The allegation in the show cause notice is that these are used for foundation and therefore, credit is not admissible. The appellants have put forward a consistent plea regarding the use of MBC sleepers within the factory. It is used for transportation of raw material and finished product. The use as explained by the learned counsel makes it clear that these are essential and integrally connected to the process of manufacture. In addition, the judgments relied by the appellant and st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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