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TMI Blog2012 (10) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... s that Diesel Locomotive torpedo ladle car carrying molten metal up to 300-350 MT is not only enhances the effectiveness, but without it the handling, and in turn production of finished goods would not be possible. Thus the view of Commr. (A) holding Diesel locomotive as accessory of capital goods is upheld. No merit in the appeal filed by department - in favour of assessee. - E/146/12 & Cross Objection No.31/12 - A-658/KOL/2012 - Dated:- 5-9-2012 - SHRI S.K. GAULE, HON BLE DR. D.M. MISRA, JJ. Appearance: Shri S.Misra, Addl.Commr.(A.R.) for the Revenue Shri Rajesh Chibber, Advocate Shri M.K. Kaushik, G.M. (Excise) for the Respondent Per Shri S.K. Gaule. 1. Heard both sides. Revenue has filed this appeal against O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturer as enshrined in explanation 2 of Rule 2(K) of Cenvat Credit Rules, 2004. They have also placed reliance on the Vikram Cement 2005 (187) ELT 145 (SC). 4.1 The contention of the respondent is that they have set up integrated steel plant having railway siding within the factory premises and laid down railway lines within the factory connecting one plant to another plant for movement of raw material, semi finished and finished goods. The Diesel locomotive as an accessory to the torpedo ladle car which increases the convenience of carrying molten metal from one place to another i.e. from blast furnace to conarc furnace and then to pig casting machine. 4.2 Respondents filed the Cross Objection challenging the finding of appellate auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004. But the meaning of the term has been explained elaborately by the Supreme Court in M/s.Annapurna Carbon Industries vs. State of Andhra Pradesh [AIR 1976 SC 1418] and M/s. Mehra Brothers vs. Jt. Commercial Officer [1991 (51) ELT 173(SC)]. In both these judgments it has been held that an accessory adds to the convenience or effectiveness of something else. This test was followed in Banco Products (India) Ltd. (supra) while holding that plastic crates are accessories. Here too, I find that the diesel locomotive increases the convenience of carrying molten metal from one place to another. The torpedo ladle car containing molten iron could have been manually handled from one place to another. But its effectiveness in carrying the molten iro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace to another. But its effectiveness in carrying the molten iron without melting can be enhanced by use of diesel locomotive , is concerned we find that though ld. Commissioner (Appeals) has observed that the molten iron could have been manually handled, ultimately, he agreed that the effectiveness in carrying the molten iron can be enhanced by the use of Diesel Locomotive. However, he failed to appreciate that once it is a question of handling 300 to 350 molten metal, it is not easy to handle it manually, if not impossible in normal situations, we thus record the concern of the appellant in this regard. Further if we look at this issue beyond the general perception that the locomotive engines are used usually for pulling the passenger/goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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