TMI Blog2005 (10) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Gujarat Pollution Control Board) Modvat facility was denied. The limited issue, therefore, is whether Modvat credit can be allowed in respect of those pipes which carry treated water for agricultural purposes situated within the factory compound and as per the directions of the Gujarat High Court/Pollution Control Board. 2. The learned Advocate referred to the provisions of Rule 57Q as it existed in 1994 and also as it exists after 1997. In 1997 the modified Rule 57Q uses the following expression :- The goods ...... used in the factory of manufacturer of final products . According to the learned Advocate, in 1997 the rules has been made more flexible and broader than what it was in 1994. 4. The learned Advocate also referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat credit is permissible . 6. In the case of CCE, Chennai v. Pepsico India Holding Ltd. - 2001 (130) E.L.T. 193 the following observations were made by the Tribunal : We find that the pipelines can be considered in the factory in this case, it would be covered by the definition of the word factory under Section 2(e) of the Central Excise Act, l944 . Section 2(e) of the Act reads as under :- Factory means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or any part of which in any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on . It is emphasized by the learned Jt. CDR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the appellant to continue manufacturing operation had they not complied with their obligation with the Pollution Control authorities. Further, they have made out a clear case that the subject goods, namely PVC pipes have been used within the premises of their factory only and not elsewhere. This fact is also not disputed by the Department. Considering all these in totality, I am of the view that the Modvat credit denied to them on such pipes by the lower authority should be made available to them. I further observe that Section 2(e) of the Act defines the factory as the premises including the precincts wherein manufacturing process is ordinarily carried out. It has been stated by the learned Advocate that the ground plan of the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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