2017 (10) TMI 1185 - AT - Central Excise

Single registration for two factories - Chapter 2 of CBEC s Supplementary instructions - Held that - As per the fact of the present case both the units are separated by a public road and process is same being, goods of both the units are used in each other, raw material in both the units are common, there is a common labour work force, common administration/work management, common sales tax registration, common Income Tax assessment and common balance sheet etc. As per the para 2.2 of Chapter 2 it is not necessary that all the factors should be fulfilled. On the reading of the same, I am of the view that even if one of the factor is fulfilled, the common registration can be issued. The appellant have fulfilled not only one but most of the factors provided in para 2.2 of Chapter 2, therefore they have made out a fit case for grant of single registration in respect of two units. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Application for single registration of two units across the road - Rejection by Commissioner - Fulfillment of requirements for common registration - Interpretation of CBEC's Supplementary instructions - Applicability of cited judgments - Grounds for granting single registration.

Analysis:
The appeal was filed against the Commissioner's order rejecting the application for single registration of two units situated across the road. The Tribunal had remanded the matter previously to examine the facts specified for common registration in line with the Central Excise Manual instructions. The Commissioner rejected the request citing separate electric connections under separate meters but acknowledged the units' compliance with Rule 4(5)(a) of the CENVAT Credit Rules, 2004. The appellant contended that they met the requirements mentioned in CBEC's Supplementary instructions, including common labor force, administration, sales tax registration, Income Tax assessment, and balance sheet in both units.

The appellant argued that they fulfilled the criteria for single registration as per the CBEC Manual. The Manual stipulates conditions for common registration, such as interlinked processes, common raw materials, common electricity supplies, common labor force, administration, sales tax registration, Income Tax assessment, and other indicative factors of inter-linkage. The Tribunal noted that even if not all factors were met, common registration could be issued if one factor was fulfilled. The Commissioner's rejection based solely on different electricity connections was deemed insufficient as other criteria were met. The judgments cited by the appellant were found directly applicable, and the Commissioner's dismissal without reason was criticized.

In light of the fulfilled factors as per the CBEC Manual, the Tribunal concluded that the appellant made a strong case for single registration. The impugned order was set aside, and the appeal was allowed, emphasizing the importance of considering all relevant factors for common registration.

(Pronounced in Court on 27.10.2017)