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TMI Blog2018 (2) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... vi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri M.S. Nagaraja, Advocate - For the Appellant Shri S. Govindarajan, AC (AR) - For the Respondent ORDER Per: Bench The appellants are engaged in the manufacture of iron and steel and are registered with the Central Excise department. They are availing the facility of cenvat credit on capital goods, inputs etc. The appellants were issued a show cause notice dt. 1.4.2009 alleging inter alia , that they had availed credit on capital goods / pipelines used for laying to draw water from Metturdam under the expansion project. The department was of the view that credit is not admissible on such pipelines as these are situated or located outsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... captive mines, the goods used outside the factory of the assessee is not eligible for credit; that only if the goods are used captively outside the factory would the assessee be eligible for credit. 4. Heard both sides. The moot point for consideration is whether the appellant is eligible for credit on the pipelines laid outside the factory which is issued for drawing water from Cauvery river. The issue stands covered in the case of Pepsico India Holdings Ltd. as well as Jaypee Bela Plant (supra). The relevant part of the decisions are reproduced as under : 6. We have considered the submissions made by both the sides and find that the pipline can be considered in the factory in this case, it would be covered by the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, when the capital goods are used directly or indirectly for the manufacturing activity though located outside the factory has been held to be eligible for credit in the above decision. The decision in the case of Madras Cements Ltd. (supra) relied by the Ld. A.R is on a different issue and not applicable to the present case. The issue in the said case was whether the capital goods used outside the captive mines is eligible for credit. 6. Following the decisions in the case of Pepsico India Holding as well as Jaypee Bela Plant (supra), we are of the view that denial of credit is unjustified. Impugned order is set aside. Appeal is allowed with consequential relief, if any, as per law. (operative part of the order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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