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TMI Blog2018 (7) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... T credit on various raw materials used in the manufacture of ceramic glazed tiles. For manufacturing these items, the appellant also needs natural gas which is available at ONGC well which is located 30 K.M. away from their factory. The appellant pumps the gas from the gas well into tankers and these tankers are driven to appellant's factory for use in manufacturing the tiles. The appellant purchased a compressor in the month of July 2013 which has been lying in their factory and availed 50% credit of CENVAT credit, treating the same as capital goods. In October 2013, they shifted the compressor from their factory (compressor was never used within the factory) o the gas well located 30 K.M away, after intimating the department. Since then, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence the compressor used in the gas well is eligible for capital goods credit. He requested that the credit may be allowed and the Order-in-Appeal may be set aside. He relied on the following case laws: (a) Glaxo Smithkline Consumer Health Limited vs. CCE, Chandigarh [2017 (348) E.L.T. 328 (Tri.-Chan)] wherein it is held that Bulk Milk Coolers and DG sets installed away from factory in milk collection centres were treated as integral part of the unit and availment of CENVAT credit was allowed on the capital goods installed at such centres. (b) Reliance Industries Limited vs. Union of India [2018 (360) E.L.T. 244 (Bom)] in which credit was allowed on Single Point Mooring (SPM) though the system was not specifically within the factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory of manufacture, the gas well where the compressor has been installed, cannot be called the factory of the manufacturer simply because the raw material which is sourced there will ultimately be used in the factory of the manufacturer. He draws my attention to the definition of "Factory" in the Central Excise Act, 1944 which applies all the rules including CENVAT credit rules, which reads as follows: "Section 2(e) in the Central Excise Act, 1944 "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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in Central Excise Act and this clearly does not cover the gas well where the compressor has been installed. I understand that there were cases where, based on the facts of each case, the credit was allowed treating the some premises as part of the factory by the Tribunal and Courts and there are also cases where such remote locations were treated as not part of the factory. In this case, I find that there is no reason for me to conclude that the gas well from where gas has been pumped is to be treated as a part of the factory of the manufacturer. It is true that the goods are finally required for the manufacture and so are many other raw materials sourced from various places without which the manufacture cannot take place. All these place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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