TaxTMI 
TaxTMI 
2020 (1) TMI 637
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....enous installed and services of Erection & Commissioning received and consumed at Duliajan Plant. 2. The Appellant, inter alia, manufactures and sells various grades of polypropylene which is dutiable/ taxable under both Central Excise and GST Law. Their main manufacturing unit is in Lepetkata, Dibrugarh, Assam and their associated units are at Duliajan, Lakwa and Tinsukia which carry on certain activities. The units located at Duliajan and Lepetkata fall within the same jurisdiction of the same Central Excise Commissionerate, though under different ranges. 3. Another unit of the Appellant is at Lakwa where C2+Liquid is manufactured and transferred to the Lepetkata for which they have taken separate Excise Registration of Lakwa Unit as dutiable goods are being manufactured. 4. Their Duliajan unit is a gas compression and dehydration unit (hereinafter referred to as 'GDU') where they purchase natural gas from Oil India Ltd, compress it and dehydrate and transfer it to their Lepetkata unit located 48 km away through a 18 inch pipe for use in manufacture of dutiable polymers. The gas which is left after manufacture (lean gas) is again sent by their manufacturing unit at Lepet....
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....onsignment of Gas Turbine Package imported by them against M/s.BCPL's order dt:30.03.2010 on payment of Customs Duty including total CVD + Addl. Duty Rs. 2,10,091/-. 07.07.2011 Filing of B/E No:40080060 by BHEL at JNPT for the consignment of Gas Turbine Package imported by them against M/s.BCPL's order dt:30.03.2010, on payment of Customs Duty including total CVD + Addl.Duty Rs. 21,125/-. 30.08.2011 Filing of B/E No:4504712 & 4504801 by BHEL at JNPT for the consignment of Gas Turbine Package imported by them against M/s.BCPL's order dt:30.03.2010, on payment of Customs Duty including total CVD + Addl. Duty Rs. 21,125/-. 26.09.2011 Despatch of consignments comprised in B/E NO.:4504581 vide L/R No:71271 ex-JNPT after clearance on payment of Customs Duty and Addl. Duty/CVD. 26.09.2011 Despatch of consignments comprised in B/E No.3413437 dt:05.05.2011, 4008060 dt: 07.07.2011 & 4504712 dt: 30.08.2011 vide L/R No:71272 ex-JNPT after clearance on payment of Customs Duty and Addl. Duty/CVD. 30.09.2011 BHEL's (importer's) invoice No: ID-HY-3010867 for the Gas Turbine Package covered under BCPL's PO dt:10.05.2010 and dispatched ex-JNPT to BCPL Duliajan vide LR N....
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.... who raised importer invoice on BCPL. 04.03.2014 Email from Sr. Manager Finance BCPL to GM (PE) GAIL about admissibility of Credit to BCPL on imported Capital goods. 22.04.2015 BCPL's letter to Assistant Commissioner CE Dibrugarh further to their initial request dt:03.03.2012 and communication dt:03.02.2014 to Superintendent C.E. Dibrugarh for inclusion in C.Ex Registration of BCPL Lepetekata amongst three connected installations of the Compressor (GDU) Station Duliajan. Requisite clarification furnished to ACCE Dibrugarh. 18.05.2015 Filing in the office of Commissioner CE Dibrugarh by BCPL (in furtherance to initial request dt:03.03.2012 and further clarifications dt:03.02.2014 and 22.04.2015) of the letter furnishing documents about commonality of work force, management, Sales Tax & Income Tax Assessment and Connectivity of operations of the three sites/ installations at Lakwa, Duliajan and Lalmati Rly. Sdg.. Copies of the letters marked to Addl. Commissioner C.E. Dibrugarh. 17.12.2015 Assistant Commissioner, O/o Commissioner C.E. Dibrugarh's letter to BCPL Lepetkata referring their letter dt:18.05.2015 and communicating that Commissioner C.E. rejected the....
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....2017 Former meeting in the office of Commissioner CGST C, & CE OF BCPL's representative with Chief Commissioner CGST, C & CE on the issue of Single Registration for the four integrated installations and admissibility of the credit on the capital goods installed therein. 11.07.2017 BCPL's letter (pursuant to the meeting dt:06.07.2017) praying for carry forward of the CENVAT Credit on Capital goods installed at: -Lakwa (Gas Sweetening & C2+Recovery Plant), -Duliajan (intake of Natural Gas and de-hydration Compression and Pumping the main CNG inputs directly to Lepetkta Plant), -Lepetkta Plant turning out the final products, HDPE, LLDPE and PPE. -and Tinsukia Rly. Sidg. (uploading Naptha input and pumping the same to Lepetkta Plant). -The request was accompanied with Diagrammatic representation of integrated manufacturing processes spread over the four installations and justification for Single Registration. 15.07.2017 BCPL's letter to Commissioner CGST, C & CE Dibrugarh, referring to the deliberations of the meeting dt:06.07.2017 emphasizing the factors justifying single registration namely, (i) All installations were under jurisdiction of CE Ra....
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....for common registration for their Duliajan plant and Lepetkata plant by inclusion of the former in their registration certificate already issued for the latter. b) Admissibility of CENVAT credit on the capital goods received in their Duliajan plant based either on common registration or irrespective of the registration. 8. He asserts that the Duliajan plant only provides inputs for further manufacture in their Leptkata plant and both are connected through their own 48 km pipeline and hence both should be given one registration regardless of the fact that they are located far from each other and they are also located in different range offices of the Commissionerate. He relies on the CBEC's manual chapter2 para 3.2 of which reads as follows: "3.2 Separate registration is required in respect of separate premises except in cases where two or more premises are actually part of the same factory (where processes are interlinked) but are segregated by public road, canal or railway-line. The fact that the two premises are part of the same factory will be decided by the Commissioner of Central Excise based on factors, such as: (1) Interlinked process product ma....
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.... Constitution but continues to be in force as per Article 372 of the Constitution. Nevertheless, this Act is squarely covered by the aforesaid entry 84 of List I of the Seventh Schedule. 15. Section 3 of the CE Act is the charging section and the other sections are the machinery sections which provide the modalities for giving force to the charging section (including the provisions for registration). It reads as follows: "Section 3. Duties specified in First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 to be levied. - (1) There shall be levied and collected in such manner as may be prescribed, - (a) a duty of excise to be called the Central Value Added Tax (CENVAT)] on all excisable goods (excluding goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); (b) a special duty of excise, in addition to the duty of excise specified in clause (a) above, on excisable goods excluding goods produced or manufactured in special economic zones specified in the Second Schedule to ....
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....ct marketable to the consumer; and the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account." 17. The term 'goods' itself is not defined and hence, through a series of judicial decisions, it is now well settled that 'goods' is understood as having the same meaning as in the Sale of Goods Act section 2 (7) of which defines 'goods' as follows: "goods" means every kind of moveable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; 18. Thus, for the excise duties to apply, they must be "goods" in terms of the above definition and the goods must be "excisable goods" and they must be either manufactured or produced. The definition of 'manufacture' in section 2(f) is an inclusive definition indicating what all elements need to be included in the manufacture. Through a series of judicial decisions, ....
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....econd Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), or (b) the wholesale purchase or sale (whether on his own account or as a broker or commission agent) or the storage of any specified goods included in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), shall get himself registered with the proper officer in such manner as may be prescribed." Rule 9 of the Central Excise Rules, 2002 "Rule 9 Registration. - (1) Every person, who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods, shall get registered: Provided that a registration obtained under rule 174 of the Central Excise Rules, 1944 or rule 9 of the Central Excise (No. 2) Rules, 2001 shall be deemed to be as valid as the registration made under this sub-rule for the purpose of these rules. (2) The Board may by notification and subject to such conditions or limitations as may be specified in such notification, specify person or class of persons who may not require such registration. (3) The registration under sub-rule (1) shall be subject to such condit....
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....nual. We do not agree with this assertion for following reasons: a) The CBEC's manual dealt with cases where the factory is split by the intervening road, railway line or pipe etc. and not cases where two units, located far from each other, are merely connected by pipes. b) Central Excise Registration has a specific requirement and it is not open for either the assessee or the Revenue to register or not register any premises beyond the legal provisions. c) The Duliajan plant in this case is merely processing the gas and is not engaged in any manufacture and therefore, it cannot be treated as a part and parcel of the manufacturing facility at Lepetkata. d) Conversely, it is also not open to the Revenue to compel registration of premises of any assessee where no manufacturing takes place even if such places are connected by pipes to a manufacturing facility. It is also not open to the Revenue to demand duty on the processing activities carried out at such premises even if they are connected by a pipe to actual manufacturing unit. e) The provisions relating to the Registration are in the CE Act and Rules and it is not open to this Tribunal ....
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....ai Lal Sur v. Paramnidhi Sadhukhan, AIR 1957 SC 907, it was held that if the words used are capable of one construction only then it would not be open to the Courts to adopt any other hypothetical construction on the ground that such construction is more consistent with the alleged object and policy of the Act. 20. In applying rule of plain meaning any hardship and inconvenience cannot be the basis to alter the meaning to the language employed by the legislation. This is especially so in fiscal statutes and penal statutes. Nevertheless, if the plain language results in absurdity, the Court is entitled to determine the meaning of the word in the context in which it is used keeping in view the legislative purpose [Assistant Commissioner, Gadag Sub- Division, Gadag v. Mathapathi Basavannewwa, 1995 (6) SCC 355]. Not only that, if the plain construction leads to anomaly and absurdity, the Court having regard to the hardship and consequences that flow from such a provision can even explain the true intention of the legislation. Having observed general principles applicable to statutory interpretation, it is now time to consider rules of interpretation with respect to taxation. ....
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.... called an equitable construction, certainly, such a construction is not admissible in a taxing statute where you can simply adhere to the words of the statute. VISCOUNT SIMON quoted with approval a passage from ROWLATT, J. expressing the principle in the following words: "In a taxing Act one has to look merely at what is clearly said. This is no room for any intendment. There is no equity about a tax. There is no presumption as to tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used." 26. This judgment of the five member Constitutional bench of the Supreme Court, which prevails over any contrary decisions of the lower courts or smaller benches leaves us with no option but to interpret the Act and Rules as they were framed and applicable during the period without any intendment and regardless of the consequences. 27. Our role is to apply the Rules as they existed during the relevant period. Rule 2(a) of the CCR 2004 defines capital goods as below: "(a) "capital goods" means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.0....