BHARAT OMAN REFINERIES LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant is engaged in the manufacture of motor spirit, high speed diesel and liquid petroleum gas falling under Chapter Heading No. 2710 of the Central Excise Tariff, 1985. They have a valid registration, granting registration to their factory at village Agasod, Bina Distt. Sagar (M.P.). The appellant filed an application dated 19.3.2008 to amend their approved ground plan of Central Excise registration to include the pipeline laid down from Wadinar (Gujarat) state to the refinery at Bina (M.P.). As per the appellant, the pipelines laid down on various parts of the land and areas in India/used for the ground pipelines were forming of integral part of premises of the refineries.

(2.) IN terms of the remand order of Commissioner (Appeals), the appellants were issued a Show Cause Notice proposing a rejection of the said request on the ground that the various locations of the pipeline are outside the jurisdiction of Central Excise Division, Sagar; that in terms of Rule 9 of Central Excise Rules, 2002, permission as regards registration of the manufacturer is restricted to the premises where manufacturing activity is being carried out. The activity of lying and jointing of pipes does not come under the purview of manufacture of excisable goods and as such the location of pipelines, which runs number of KMs. from Gujarat State to M.P. cannot be regarded as precinct of the notice's refinery.

(3.) I have heard both the sides duly represented by Shri D.P. Bhave, ld. Advocate for the appellant and Shri R.K. Mishra, ld. Jt. CDR for Revenue, it stands contended before me that the entire area included in the revised ground plan are in the possession and control of the appellant and they have right to use over the said land, duly supported by legally valid documents. My attention also stands drawn to the definition of factory, as appearing in Section 2(e) of the Central Excise Act which means the premises including the precinct. There is nothing in the said definition to suggest that such premises must fall, in its entirety within the jurisdiction of one excise division. Inasmuch as the pipeline areas are required for transportation of the liquid oil from Wadipur to Sagar, they have to be held as connected with the manufacturing process and the lower authorities should have amended their registration.