TMI Blog2018 (7) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... that there are conflicting views available on the subject and also all the facts have been disclosed by the appellant to the department through their ER-2 Returns filed with the department. Appeal allowed - decided in favor of appellant. - E/13982/2014-SM - A/11014/2018 - Dated:- 25-5-2018 - DR. D.M. MISRA, MEMBER (JUDICIAL) For Appellant: Mr. P.M.Dave (Advocate) For Respondent: Mr. S.N. Gohil (AR) ORDER This is an appeal filed against OIA No. CCESA-VAD-APA-3/SSP-002/2014 passed by the Commissioner (appeals) Central Excise-Vadodara. 2. Briefly stated the facts of the case are that the appellant an 100% EOU engaged in the manufacture of dyes intermediates, pigments etc. installed a boiler in their Unit I, to produce steam, for captive consumption, a portion of the said steam is wheeled to their Unit-II, situated on the same plot. The appellant at their Unit No-I availed CENVAT Credit of ₹ 43,15,655/- on the furnace Oil, used in the generation of steam during the period from June 2008 to Nov 2008. Alleging that the appellant are not eligible to the credit on the quantity of furnace Oil used in the generation of steam, and transferred to their Unit II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the particulars are reflected in the said returns. It is his contention that, therefore, invocation of the extended period of limitation is unsustainable. In support, the Ld. Advocate referred the judgment of Hon ble Gujarat High Court in the case Commissioner Vs. Meghmani Dyes Intermediates Ltd. 2013 (288) ELT 514 (Guj.). 4. Per contra, Ld. AR for the Revenue reiterated the finding of the Ld. Commissioner (Appeals). He submits that the Hon ble Gujarat High Court in the case of Sintex Industries Ltd. Vs. CCE 2013 (28) ELT 261 (Guj.) has held that even though two units are situated in the same premises/plot belonging to the same management, but possessing different Central Excise registration, hence to be considered as separate factory, and accordingly, the furnace oil used as fuel, for generation of electricity and used in one unit, is admissible proportionately to the extent it is used in that unit, where it was generated and the quantity of steam/electricity wheeled out to other unit, proportionate Cenvat Credit on furnace oil, to the extent wheeled out is not admissible. 5. Heard both the sides and perused the records. 6. I find that the issue revolves in a very na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry given in the Central Excise Act, which is as follows : (e) 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 in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on; Mr. Narasimhan, contends that the Plastic Division of the assessee should be treated to be a factory of the assessee and thus, the decision of the Supreme Court in the above case goes in favour of his client. 12 . We are, however, not impressed by the above submission of Mr. Narasimhan for the simple reason that the appellant itself has registered the Plastic Division factory separately under Rule 9 of the Central Excise Rules, 2002/Rule 174 of the Rules of 1944. 12.1 Rule 174 (present Rule 9) read with Rule 175(2) mandates that if the same person wants to have licence for carrying on business in more than one capacity, he is required to file separate applications. Rule 175(3) [present Para 2 of the Notification No. 35/2001-C.E. (N.T.), dated June 26, 2001] provides that in a case where the applicant has more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the act which means more than one premises, it has to be construed as the factory owned by the assessee. If the assessee owns more than one unit, all the units if they are situated at a place would constitute a factory . If the electricity or steam generated within the factory of production means within the factory premises which may include more than one unit. If such electricity or steam generated within the factory of production is utilized by the assessee in more than one unit and if those units are manufacturing excisable goods, then, the assessee would be entitled to the benefit of CENVAT credit to the entire extent of utilization of such electricity or steam in all the units of its factory premises. Therefore, whatever goes into generation of electricity or steam which is placed within the factory which may consists of more than one unit would be an input for the purposes of obtaining credit on the duty payable thereon. 16 . In the instant case, the assessee is having two units; one DTA unit and another EOU unit. Both are situated in the same factory premises. Both are manufacturing excisable goods. The assessee has purchased furnace oil from which, the steam is gen ..... 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