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TMI Blog2017 (1) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... erial. Their use inside plant formed process of manufacturing and the assessee was entitled to take credit for duty paid by them. Credit allowed - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... molten metal, other intermediate products is not possible. Consequently, there is no question of manufacture of final products. 6. I find that these items are used in the factory for transportation of raw materials in semi-furnished form, final products, etc. in the plant without which there cannot be any movement of the material from one division to another. 7. CBEC vide Circular No.276/110/96-TRU dated 2nd December, 1996 clarified as under : "2. It has been brought to the notice of the Board that Clause (d) of Explanation (1) is being interpreted by some of the field officers covering only such components, spares and accessories which would fall under Chapters shown under clauses (a) to (c) and credit is allowed only on those componen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .) allowed the appeal of the assessee. It is observed that railway track was handling system for raw material and processed material. Their use inside plant formed process of manufacturing and the assessee was entitled to take credit for duty paid by them. The relevant portions of the said decision are reproduced below : "14. Applying the aforesaid test to the facts of this case, it is apparent that the use of railway tracks is related to the actual production of goods 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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. 18. We find from the order of the Commissioner that in spite of taking note of the aforesaid use of the railway tracks and accepting the same as correct, the Commissioner denied the relief to the appellant on an extraneous ground, i.e., railway tracks were used for other purposes as well, namely, apart from conveying hot metal and hot pigs, it was used for carrying raw materials and finished goods as well. This can hardly be a ground to deny the relief inasmuch as by inci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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