Notice Issued on Gas Plant's Role in Polymer Manufacturing Unit; Impacts Cenvat Credit Eligibility for Capital Goods

The Gauhati HC issued a notice returnable within three weeks regarding whether a gas plant at Duliajan, supplying gas for polymer manufacturing at Lepetkata, is part of the Lepetkata manufacturing unit. This determination impacts the appellant's eligibility for Cenvat credit on capital goods at Duliajan. The court granted interim relief, preventing coercive action against the appellant until a decision is reached.

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The appeal raises a "substantial question of law" whether "the gas plant located at Duliajan belonging to the appellant, which supplies gas for manufacturing polymers at Lepetkata forms part of the manufacturing unit at Lepetkata so as to enable appellant to claim Cenvat credit on capital goods installed at Duliajan?" Issue is noticed, returnable within three weeks. No formal steps are called for in respect of the "sole respondent, as the said respondent is duly represented." Interim direction: in the meantime the appellant "will not be subjected to any coercive action on account of this issue raised relating to the matter in issue."

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