M/s. Chemplast Sanmar Ltd. Versus Commissioner, GST And Central Excise, Puducherry
Central Excise
2018 (4) TMI 1224 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 1-2-2018
Appeal No. E/Misc. /41725/2017 and E/241/2011 – Final Order No. 40268/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri B. Ravichandran, Member (Technical)
Ms. Radhika Chandrasekar, Advocate for the Appellant
Shri A.Cletus, Addl. Commissioner (AC) for the Respondent
Per B. Ravichandran,
The appellant is against the order dated 8.2.2011 of Commissioner, LTU, Chennai.
2. The appellants are engaged in the manufacture of Caustic Soda Lye and Ethylene-di-Chloride liable to central excise duty. For import and receipt of ethylene through sea, they have put up a jetty in Karaikal Port along with all connected facilities like an operating platform, berthing dolphins, mooring dolphins, interconnected walk way, unloading arm, controlling equipment, pipelines, safety arrangemen
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ablishment and paid excise duty on such goods. These are used as integral part of manufacturers' facility as receipt and transfer of raw materials cannot be considered as not connected to manufacturing process. Regarding the possibility of use by others of the said facility, the ld. counsel submitted that they have put up the facility as per the licence granted by the port authorities. The said licence stipulates that with the consent of the appellant, the facility can be made available to others. This is only a provision in the agreement which has not been put to use. Even otherwise, the whole expenditure of the facility along with central excise duty has been borne by the appellant and there is no shared expenditure in putting up the facility in the port and pipe line. She also relied on various decided case laws in support of her argument.
4. The ld. AR reiterated the findings in the impugned order.
5. We have heard both sides and perused the appeal records.
6. We note that the a
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tial for manufacturing process. In the said dispute also, the single point mooring system was installed for discharge and transport of liquid cargo used as a raw material.
7. The Hon'ble Supreme Court in Jayaswal Neco Ltd. (supra) referred to principle laid down in J.K. Cotton Spinning and Weaving Mills Co. Ltd. – 2002-TIOL-116-SC-CT-LB to allow credit on railway track materials which are used for carrying materials and finished goods for the assessee. The principle laid down in J.K. Cotton Spinning and Weaving Mills Co. Ltd. (supra) is that where any particular process is so integrally connected with production of goods that but for that process, manufacture or processing of goods would be impossible or commercially inexpedient, goods required in that process would fall within the expression “in the manufacture of goods”.
8. We also note that the Tribunal in Finolex Industries Ltd. Vs. Commissioner of Central Excise, Pune – 2003 (156) ELT 96 (Tri.) examined a similar dispute and hel
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