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TMI Blog2019 (8) TMI 1685X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 A Show Cause Notice dated 14.07.2010 was issued on the allegations inter alia on the grounds that when the Officers of Balasore Division visited the appellants' factory premises, it was discovered that the appellants were availing CENVAT Credit on the above items; that a statement of the Associate Manager (Excise) was recorded wherein he admitted to the fact that the railway network laid inside the factory premises was used for inward transportation of raw materials, outward transportation of finished products and also for movement of cranes for carrying raw materials and finished goods; that the impugned items were being utilized by the appellant in the construction of such railway tracks; that the above items did not qualify as capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and without the use of the said railway track, commercial production would be inexpedient. 15. In the instant case, the manner in which railway track materials have been used by the appellant was explained by the appellant before the Commissioner and veracity thereof was accepted by the Commissioner. Therefore, without any fear of contradiction, we may note the exact process that is involved : "These railway tracks used in transporting hot metal in ladle placed on ladle car from blast furnace to pig casting machine through ladle car where hot metal is poured into pig casting machine for manufacture of pig iron. Secondly the system also helps in taking hot pigs from pig casting machine to pigs storage yard by the big wagon where hot pi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2019 (2) T.M.I. 1027 - CESTAT Kolkata wherein the above decision of the Hon'ble Supreme Court has been followed. 4. Per contra, Ld. Departmental Representative for the Revenue supported the findings of the lower authority, but however, was unable to distinguish the ratio of the Hon'ble Supreme Court in the case of M/s. JayaswalNeco Ltd. (supra). 5. After going through the Show Cause Notice in the case on hand and the decision of the Hon'ble Supreme Court in the case of M/s. Jayaswal Neco Ltd. (supra), we find the assertion of the Ld. Advocate for the appellant to be correct as the Hon'ble Supreme Court has settled the issue as regards the availment of CENVAT Credit on rails and railway materials is concerned. The ratio of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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