TMI Blog2019 (2) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... said activity for which railway tracks are used, there cannot be manufacturing of pig iron, and allowed the credit. Credit allowed - appeal allowed - decided in favor of appellant. - Appeal Nos. E/218/2009 - FO/A/75171/2019 - Dated:- 11-1-2019 - SHRI P. K. CHOUDHARY, MEMBER (JUDICIAL) And SHRI BIJAY KUMAR, MEMBER (TECHNICAL) Shri Ravi Raghavan, Advocate Ms. S. Mundhra, C. A. for the Appellant (s) Shri A. K. Biswas, Suptd. (AR) for the Respondent(s) ORDER Per Bench: This is an appeal filed against the Order-in-Original dated 21.1.2009 passed by the Commissioner of Central Excise, Ranchi. The Commissioner by this order while adjudicating the show cause notice dated 05.05.2008 denied CENVAT Credit of RS.3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit availed on rails, locomotives, wagon wheel, crossings and other railway material during the period from April 2007 tio February 2008. The Commissioner has held that the items in question have no nexus as being used in or in relation to the manufacture of final products. He has further held that the transportation of the raw materials is a distinct process and the transportation of the finished goods itself is a post manufacturing activity, hence credit is not admissible. 5. It has been submitted by the appellant that the items in question are used within the factory of production for the purpose of transportation of raw materials, semi-finished goods, intermediate goods, slag, final products, etc. The use of the aforesaid items for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ped for cooling and making ready for dispatchers. This Railway tracks are slap used in handling of raw materials at wagon tippler to stacker reclaimed where stacking and reclaiming of raw material is taken place and required quantity is conveyed for further processing at stock house. 16. It reflects that the appellant has installed railway tracks within the plant which is a handling system for raw material and processed material. 17. The aforesaid process squarely meets the test laid down by this court in M/s. J. K. Cotton Spinning Weaving Mills Co. Ltd. case. It is clear that the railway tracks are installed not only within the plant, but the main objective and purpose for which the capital expenditure on laying these railwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curred because the Commissioner did not keep in mind the principle of law laid down by this Court in M/s J. K. Cotton Spinning Weaving Mills Co. Ltd. s case, highlighted above. 19. When we read the order of the CEGAT, we find that CEGAT has not even adverted to and examined the issue from the aforesaid angle, which was the only method for arriving at a finding as to whether the railway tracks installed within the plant would come within the definition of capital goods under Rule 57Q of the Rules or not. The order of the CEGAT is stoically silent. It has affirmed the order of the Commissioner by simply observing that the Commissioner has arrived at the conclusion that these goods are not being used directly or indirectly for produci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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