9911796707
TMI Blog2000 (4) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that under Rule 57Q credit of Central Excise duty on capital goods is available only in respect of capital goods installed in the factory premises. It was held that in the instant case as the party had installed the capital goods outside their factory, that too at a far-off place from their factory, they cannot get the benefit. The appellants had been contending unsuccessfully that the pump should be treated as installed within the factory in view of the enlarged definition of factory contained in the Section 2(e) of the Central Excise Act. They had relied on some case law also in support of their submissions. The matter has been referred to this Larger Bench by a Bench of Single Member who heard the appeal on account of the Difference of Opinion between two decisions reported in 1998 (99) E.L.T. 395 in the case of Madras Cements Ltd. v. C.C.E., Hyderabad and 1991 (55) E.L.T. 415 in the case of Associated Cement Co. Ltd. v. C.C.E. 2.When the matter came up for hearing on 27-3-2000, none appeared for the appellant. They have desired that their case may be decided based on the written submissions filed by them. Accordingly, we are deciding this appeal after considering th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of factory covers any premises including 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. He submitted that under the Section, in order to form part of the factory, the premises and precincts wherein the excisable goods are manufactured or wherein any part of manufacturing process connected with the production of these goods is being carried out has to be part of the factory premises or factory precincts. In the instant case the pump set was installed a Kilometer away from the factory. Therefore, by no stretch of imagination could it be said that the factory premises or precincts extended upto the pumping station. He also submitted that the pumping station did not constitute part of the ground plan of the factory or part of the premises under Rule 174 of the Central Excise Rules. Under sub-rule (3) of Rule 174 "if there are more than one premises requiring registration, an assessee shall obtain separate Registration Certificate for each of the premises". In the instant case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and is taken up for crushing for desired use in the cement mill. In our view, therefore, the process of mining carried out could not be taken be encompassed or for the manufacture of cement. Since the question of Modvat credit under Rule 57A has to be related to a unit which is manufacturing a particular product, in our view the operations which are carried out with a view to generate the raw material, unless this generation is connected to the process of manufacture of the commodity, it cannot be taken to be integral to the process of manufacture of the notified finished product. In the above view of the matter, the benefit of the Modvat credit as claimed has to be denied." 5.The ld. DR submitted that the Modvat credit was denied by the Tribunal in the case of Madras Cements both on the ground that the excise licence for the cement factory could include only such of those areas where the activity relating to manufacturing the cement is carried out. He submitted that what weighed with the Tribunal for denying the Modvat credit on the mining machinery was that the mining area did not form part of the ground plan of the cement factory. In the present case also as the ground plan di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K.M. away cannot be considered to be within the precincts of the factory. The dam reservoir where the pump is located has not been registered under Rule 174 or included in the ground plan of the factory. This makes it clear that originally appellants themselves did not consider that the pump site to be part of the factory. The appellant's submission that bringing water from reservoir to the factory located a K.M. away constitues part of manufacturing process also is not acceptable. Any manufacturing process commence only after the materials required for the said manufacture are brought together in the factory and does not extend to procurement of various materials. Therefore, there is no merit in the appellant's submission that collection of water constitutes carrying out of any manufacturing process in connection with the production of the goods. The decision of this Tribunal in Madras Cements Ltd. (supra) have considered the question of manufacture and it have been stated that factory is a definite concept and in terms of Section 2(e) factory could be a place where manufacturing activity is carried out and the precincts thereof where the manufacturing activity is carried out. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
