2012 (7) TMI 840 - AT - Central Excise

Classification of goods - Capital goods - Whether the rails which were used by the respondent for moving stacker and reclaimer in their factory during the material period could be treated as capital goods falling under Rule 2(a)(A) of the Cenvat Credit Rules, 2004 - Held that - The original authority found that rails were essential for the movement of the two machines viz. stacker and reclaimer which are used for stacking and spreading the lime-stone, one of the essential input used in the manufacture of cement (final product). The said machines were found to be classifiable under Heading 84.74 of the first schedule to the Central Excise Tariff Act and the rails were found to be accessories to these machines and accordingly classified as capital goods for the purpose of Cenvat Credit. These findings of the original authority were sustained by the first appellate authority. These concurrent findings of the authorities are not under challenge in the present appeal of the department - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT Bangalore upheld the decision that rails used for moving stacker and reclaimer in a factory are capital goods under Rule 2(a)(A) of the Cenvat Credit Rules, 2004. The rails were considered essential for the machines used in manufacturing cement. The appeal by the department was dismissed as the findings of the authorities were not challenged.