CESTAT says flyash transport qualifies as Cenvat Credit

Can CENVAT credit be denied on transportation of fly ash generated during captive power generation? CESTAT Kolkata says no. 

The electricity was used to manufacture dutiable products, the fly ash arose from that process and was itself cleared on payment of excise duty. Following its own earlier decision on identical facts, the Tribunal held that transportation of fly ash was an input service connected with manufacture and allowed the credit.