2024 (3) TMI 446 - AT - Central Excise

CENVAT Credit - inputs used in such Railway tracks - nexus with manufacturing and clearing activities or not - HELD THAT - Hon ble Chhattisgarh High Court in the case of PR. COMMR. OF CUS. C. EX., RAIPUR VERSUS STEEL AUTHORITY OF INDIA LTD 2018 (2) TMI 2007 - CHHATTISGARH HIGH COURT , has held After hearing Learned Counsel for the parties, we are not able to persuade ourselves to take any different view of the matter than the one which has been taken by this Court in the matter of AMBUJA CEMENTS EASTERN LTD. VERSUS COMMISSIONER OF C. EX., RAIPUR 2010 (4) TMI 429 - CHHAITISGARH HIGH COURT where Welding Electrode has already been considered to be input for allowing CENVAT Credit. Appeal filed by Revenue dismissed.

Summary

Issues involved: Cenvat credit eligibility for duty paid on inputs used in railway tracks within factory premises.

Summary:
The Respondent avails Cenvat credit for duty paid on inputs and capital goods used in manufacturing dutiable goods, including a railway network within the factory premises. The railway network is crucial for internal transport of raw materials and finished goods, without which production and dispatch of dutiable products would not be possible. A Show Cause Notice was issued to deny Cenvat Credit for inputs used in the railway tracks, but the Adjudicating authority dropped the demands based on case law. The Revenue appealed, arguing that the demands should not have been dropped. The Respondent contended that previous judgments have consistently held that they are eligible for Cenvat Credit. After considering the appeal papers and case law, the Tribunal found in favor of the Respondent, citing previous decisions and the use of items within the factory premises. Following the precedent set by previous judgments, the Tribunal dismissed the Appeal filed by the Revenue.