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TMI Blog2017 (5) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... se two divisions were maintaining separate accounts for availing the Cenvat credit. In December, 2011, the appellant company applied for single registration and this request was allowed. On granting common registration for these two divisions, the appellant merged the se r e Cenvat credit accounts of the two divisions. At that time, Cenvat Credit balance available was Rs. 14,11,14,058/- in the Excel Fibre Division which was used, after merger, commonly for payment of duty on all the finished products including the Viscose staple fibre. The department was of the view that this is a case of transfer of Cenvat credit from one registered unit to another and hence, it is governed by Rule 10 of the Cenvat Credit Rule 2004. Since, this is not a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n encompassing both the divisions. Even though different products are manufactured in separate divisions, the premises is to be treated as a single factory, since the common premises are encircled by a single compound wall, with common entrance gates and exit gates. There is no boundary wall between the divisions. ii. Even if the SFD/EFD are separately registered under the "Factories Act" and "Sales Tax Laws", it is the case of the appellant that once, common registration is granted, the Cenvat Credit Rules permit a common Cenvat account. Under such circumstances, there can be no objection to SFD discharging Central Excise duty making use of the credit accumulated in EFT prior to common registration. iii. They also relied upon several c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax payer cannot claim in one Act these two factories are separate but in another Act they are same when definition is identical. iv. Common sales tax registration: in the present case, different registration for both factories; v. Common administrative setup and workforce: different in the present case for both factories; Further, this issue was considered by the Hon'ble Supreme Court in Rollatainers 2004(170) ELT 481 where it was observed: "simply because both factories are in same premises does not lead to inference that they are one.... There is no commonality of purpose,... a passage in between and they are not complimentary to each nor they are subsidiary to each other. End product is also different... Staff is separate, Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as taken the view that this is also not a case where manufacturer has shifted his factory to another site. The factory has not been transferred on account of change of ownership or merger or amalgamation. 7. The definition of the term "Factory" as given in Section 2(e) is copied below: "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;" 8. Considering the definition of factory as above, there is no doubt that the common registration granted by the department covers the premises enco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. The Hon'ble Madras High Court considered a case where a sugar unit and a distillery unit had separate registration certificates, but situated within the same premises under the same management. The dispute in that case was also with reference to issue of a single registration and merger of credits in the two units. The Hon'ble Madras High Court decided the issue as follows: "We agree with the contentions made by the Id. Counsel appearing for the assessee. As already seen in the preceding paragraph, the sugar unit and the distillery unit belonged to the self-same management and they are in the same premises. Although there are two units functioning, it is not denied by the Revenue that the resultant Molasses from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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