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2018-VIL-327-CESTAT-KOL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – whether the process carried out in “Specialized Tankers” can be termed as manufacture to make assessee eligible for Cenvat Credit on inputs involved - term “factory” as per Section 2 (e) of the CEA, 1944 - manufacture of Coal Tar Pitch from Crude Coal Tar – HELD - the appellant obtained the duty paid inputs and supplied the same to the job worker, fromwhere, it was received back by them in “Specialized Tankers” after conversion into liquid coal tar pitch within 180 days as stipulated under Rule 4 (5)(a)(i) of the CCR, 2004 and the same were cleared in the “Specialized Tankers” wherein the incidental or ancillary processes for completion of the process of manufacture were undertaken - As per Section 2 (e) of the CEA, 1944, the word “factory”, does not mean the registered factory premises. A part of the factory may be in the “Specialized Tankers” as the case is in the instant case. Thus, with the help of “Specialized Tankers”, the appellant is able to perform the process of manufacture. As per record, the “Specialized Tankers” having inbuilt Diesel Generator with electric heating facility and insulated tracing coils all around its body with automatic temperature control mechanism to activate the generator and temperature indicator to achieve the softening point and desirable temperature - during the period under consideration, the manufacturing process was continuing with the help of job worker as well as in the “Specialized Tankers” - The raw material supplied to the job worker were received back by the appellant in “Specialized Tanker”. When the excise duty was paid accepted on the final product, the appellant is entitled for cenvat credit on inputs - the impugned order is set aside and the appeals are allowed

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