TMI Blog2023 (9) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... ed facilities in the sea near Karaikal Port only to facilitate the receipt and transfer of their essential raw materials ethylene to bring it to the factory for further manufacture. Apparently, such handling and receipt of essential raw materials is to be considered as part of integral manufacturing process. The demand cannot sustain and requires to be set aside - Appeal allowed. - Hon ble Ms. Sulekha Beevi C.S., Member (Judicial) And Hon ble Shri Vasa Seshagiri Rao Kumar, Member (Technical) Smt. Radhika Chandrasekar, Advocate for the Appellant Shri Rudra Pratap Singh, ADC (AR) for the Respondent ORDER Per Ms. Sulekha Beevi C.S. Brief facts are that the appellants are engaged in the manufacture of Polyvinyl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n purchased by the appellant. They have necessary permission from the PWD also. The Ministry of Environment and Forest has accorded their approval and clearance for setting up MTF and pipelines which proves beyond doubt and substantiate that without the MTF the factory cannot be functional. The MTF is an integral part and parcel of the whole manufacturing facility without which the appellant is not able to run the factory. The appellant has a pipeline up to certain point of the sea where the ship unloads the imported ethylene. From that point, the ethylene is transferred to the offshore tank. The capital goods in the MTF are necessary for receiving the goods from ships, unloading of cargo, transferring of cargo through pipeline to the stora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea is eligible for credit. In the appellant s own case, the very same issue was considered and the relevant portion is reproduced below:- 6. We note that the appellant have put up jetty and connected facilities in the sea near Karaikal Port only to facilitate the receipt and transfer of their essential raw materials ethylene to bring it to the factory for further manufacture. Apparently, such handling and receipt of essential raw materials is to be considered as part of Integral manufacturing process. We note that similar dispute came before the Hon'ble Bombay High Court in the case of Reliance Industries Ltd. reported in 2017- TIOL-1630-HC-MUM-CX. The Hon'ble High Court after Extensively analyzing various decided case laws inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same should be considered as falling within the scope of section 2(e) factory as defined under the Central Excise Act, 1944. 9. Based on the analysis of various case laws as discussed above, we find that denial of credit in the present case is not legally sustainable. The impugned order is set aside and the appeal is allowed with consequential relief, if any. 10. The miscellaneous application filed for change of cause title of the name of the respondent to Commissioner, GST Central Excise, Puducherry is allowed. 7. By judicial discipline, following the above decision, we are of the considered opinion that the demand cannot sustain and requires to be set aside. In the result, the impugned orders are set aside. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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