Page 172 - GSTL_3rd September 2020_Vol 40_Part 1

106 GST LAW TIMES [ Vol. 40
ment is that the same should be used in the factory of the manufac-
turer. Thus, it can be seen that the language used in the explanation
is very liberal.”
(m) Further, in case of Ultratech Cement Ltd. [2016 (339) E.L.T. 127 (Tri. -
Hyd.)], it was held in Para 6 that mono block concrete sleepers for
Rail track are eligible Cenvatable goods. The relevant extract of the
said case is excerpted below for reference.
“I have considered the submissions made by either side. The issue
is whether credit is admissible on MBC sleepers. The allegation in
the show cause notice is that these are used for foundation and
therefore credit is not admissible. The appellants have put forward
a consistent plea regarding the use of MBC sleepers within the fac-
tory. It is used for transportation of raw material and finished
product. The use as explained by the Learned Counsel makes it
clear that these are essential and integrally connected to the process
of manufacture. In addition, the judgments relied by the appellant
and stated supra have held that credit is admissible on railway
tracks/sleepers used within the factory for transportation of raw
materials and finished goods. Following the ratio laid in these
judgments, I hold that the appellant has established a case on merits
and that credit is admissible on MBC sleepers.”
(n) In the case of Orient Cement Ltd. v. CCE, Hyderabad-I - 2017 (51)
S.T.R. 459 (Tri. - Hyd.), Railway siding laid outside the factory
premises were held to be part and parcel of facility for transporta-
tion provided inside the factory premises and the assessee was held
eligible for Cenvat credit. The Appellant wishes to quote Para 7 and
8 of the said decision for reference :
“7. From the discussions and observations made in the above
judgments as well as the facts presented before us, we are of the
view that the credit availed on service tax paid on maintenance ser-
vice of railway sidings is eligible. It has also to be pointed out that
without the railway sidings laid outside the factory so as to connect
factory with railway station, no purpose would be served. Follow-
ing the decisions, we hold that the credit is admissible.
(o) In the result, the impugned order to the extent of disallowing credit
in respect of erection, commissioning and installation services and
Maintenance of Railway sidings is set aside. We hold that appellant
is eligible for credit of these two set of services.”
(p) Hon’ble High Court of Chhattisgarh, in case of M/s. Vimla Infrastruc-
ture India Pvt. Ltd. v. CCE, Raipur [2018-TIOL-556-HC-
CHHATTISGARH-ST = 2018 (13) G.S.T.L. 57. Chhattisgarh], held
that
“The railway sidings are low-speed tracks, distinct from a running
line or through route such as a main line or branch line - Railway
sidings are used for marshaling, stabling, storing, loading and un-
loading vehicles & other goods - In raising construction of railway
siding, the assessee used MBC Sleepers, which are in turn con-
structed using MBC Railway Sleepers and RLS Rails - It may be
noted that such railway sidings facilitate provision of ‘Cargo Han-
dling Service’ - Thereby, considering such facts, the ‘Inputs’ were
used to provide taxable output services - Hence, by erecting Rail-
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