TMI Blog2023 (12) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... Jayaswal Neco Limited v. Commissioner of Central Excise, Raipur [ 2015 (4) TMI 569 - SUPREME COURT ] held It is clear from the above that the use of railway tracks inside the plant not only form the process of manufacturing, but it is inseparable and integral part of the said process inasmuch as without the aforesaid activity for which railway tracks are used, there cannot be manufacturing of pig iron. Thus, the use of railway tracks are meant for production of goods. The acetylene gas used in 30 shops/departments for repair and maintenance of machineries was also used in connection with the manufacture of the finished goods for the Appellant - the Appellant is eligible for the benefit of exemption notification no. 67/95-CE. Hence, the demand confirmed in the impugned order by denying the benefit of exemption notifications 65/95 or 67/95 is not sustainable - appeal allowed. - MR. R. MURALIDHAR MEMBER (JUDICIAL) AND MR. K. ANPAZHAKAN MEMBER (TECHNICAL) Dr. Samir Chakraborty, Sr. Advocate Mr. Abhijit Biswas, Advocate for the Appellant Shri K. Chowdhary, Authorized Representative for the Respondent ORDER The present appeal has been filed by the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the same allegations, but pertaining to different periods of clearances of acetylene gas for captive consumption. The Commissioner of Central Excise, Ranchi passed a common Order-in-Original confirming the duty of Rs.32,82,405/- including Education Cess and SHE Cess along with interest and penalty and dropped the remaining demand in the Notices. In the impugned Order, the Ld. Commissioner has dropped the demand with respect to the exemption claimed by the Appellant under Notification No. 67/95-CE. However, the demand on the acetylene gas used in the traffic department for repair and maintenance of railway track, wagons etc. the acetylene gas used in 30 shops/departments wherein the Appellant had claimed exemption under Notification No. 65/95-CE was confirmed. Such demand was confirmed denying the benefit of Notification no. 65/95-CE on the following two grounds: The acetylene gas has not been manufactured in the workshop; and The benefit of notification is only available for the machineries that are installed in the factory and the expression machinery installed in the factory conveys the meaning that the machinery should be used for the manufacture of final goods. Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products are also made through railways for which the entire network of railway lines inside the premises of the Appellant is owned and maintained by the Appellant. Thus, the railway network is an integral part of the plant without which the production and dispatches of dutiable products would not be possible. The plant is handling 900 to 1000 railway wagons every day to meet the requirements of incoming raw materials and product dispatches. In relation to dispatch of 1 ton of steel, approximately 8 tons of handling of material is done by them. The slag arising in the blast furnace and steel melting shop are also transported through rail within their factory. The controlling and monitoring of rail traffic is essential for properly feeding the inputs to the manufacturing process and transfer of intermediate products to the next process. The inability to transport the inputs and intermediate products in the absence of rail traffic will cause stoppage of production and can also result in damage of the plant and machinery. The Appellant submits that they claimed the exemption of captively consumed acetylene gas under the Notification 65/95 as well as under 67/95. The adjudicating autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption for the acetylene gas consumed within the factory for repair and maintenance of railway track, railway wagon, loco and in certain shops and departments for repair and maintenance of machineries under the Notification 65/95. However, we observe that they are eligible for the exemption under the notification 67/95, since the said railway track, rail wagons, and locomotives are integral to the manufacture of the goods. We also observe that the controlling and monitoring of rail traffic is essential for properly feeding the inputs to the manufacturing process and transfer of intermediate products to the next process. The inability to transport the inputs and intermediate products in the absence of rail traffic will cause stoppage of production and can also result in damage of the plant and machinery. Hence, we hold that the said railway track, rail wagons, and locomotives are integral to the manufacture of the goods of the Appellant and are therefore they can be considered as machineries installed in the factory for the manufacture of the goods. We observe that Notification 67/95 exempts from payment of duty all goods specified therein manufactured in a factory and used with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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