Karnataka High Court
Commissioner Of Central Excise vs M/S Icl Sugars Ltd., on 8 April, 2011
Bench: N.Kumar, Ravi Malimath
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PRE$§NT mg HOE\3'Bi..E MR. JUS"?i1CE -Px§A,.£?;L;}'fai%§%R' mg THE HGE\i'BE_E MR,JusTiC§+%r<gv: 5/§}<i\{§{'£'f'§";fi;T§§§ cmm '©9957 %.<>§'F::2Q§§¥.
BETWEEN:
Commissioner céf fgientkaE._E}><%:i.=;:e;'"
Mysore I...9wisaon, &--.s=--2, Vinava :!viarQ§a}*'V_--v Siddarthva Nagar, V' Mysore --« 'S70 a15.-,_ ' _ H.fi;PPELLANT {By S:j.E--.F>.I,j;R. fihagiéaf; /f:$;':':h./'o<:ai;e) M}3:,£«:",'L i§u§g;§T1=:ém:tes{ ¥'«€a¥<a~v_aEE§_,v" .
K R Pet frTa;.uk, i,*' '«__E%?»ag*§flya E>.i.5%r£Ct ~ 5?: 425, Wagsésmaam? : /-"
%//I 4, The ieerned ceeneei eepeering fer the reveeee eesaiiing the impugned orde? Centeeeed that as o;i~;:j the definition ef Rule §i?~vQ there wee ne eierege ta'né_<§':i:n'e--i44:;3~;iVe€i. in the definition ef capital goods. it is oniy b'"3~4,'~.~_:';ii.iejiV:ii':iVV<iefl:ii<;V.'iJ'.fi'i eated 1w3-2001 in the definétiofziiiiwof'«eaoitai sterege tank, is inserted. Therefer'ei__fo':_ithe ;o£g~_§.iee eneer--i.oi*~.iV to the said amendment the Ceiivat ci"edi_t'co':_::i{i"1,no'iE shave V been given on the i!"i'§3..L.JiIS u'S'edo_:'in""£.ije me'n'u*fé3cture of storage tanks. Even otnerwisevvEn"oegF1--.Ati1e'f:vai:er stored in a etorage i:an_i.<~ie "_usec§j:_ in{he-.n*§en:1Vfecfji:'uire of sugar, the syrup andi._n'i'e.iee'ées. s*tored'i'r:----~t.he storage tank are not used in-,the :*i1ai1'i;ifaVCE:ig4'Eei.§_"o'i'__'Sugar, on the contrary it is derived inn«.._fhe €;.ouiise'i...'--~~of manufacture of sugar and ihe_refo§ex' the e"se8S_$_ee is not entitied to the benefit of Ceéwet--v(:r'e§,i«iif:;"v ffheugh in the definition of Rafe 5?~Q the sierege {:e.é":i_«<f=v~Jee not inciuded, it is deer from the afereiseié... eiefinition that the tubes, pipes and fiictinge "..fé:iiVeire--of iieee in the factory were ieeiueeci in the definition
-- o%%'§ee'eii:e£ geese. "Fne storage tank nee been iieid fie ee e 7 %// /., comptment its the main machinery namely, boiler and the benefit is extehdeé t0 the inputs used in the C§fiS§,?.Li€_igiC{? at the storage tank theugh it is alga embefified _ 011 the Same reasanéng the assegsihg authsi'*i»t*§:~:>:::'§:h't._to_:u have extenfied the benefit to thé; s§.fr:_Ai;3 jrn4¢c'E'<2¥i:$s';V&é'r;,;v_Aé storage tank EJESQ, as they E3?F§'V.'£}.Tyf€"Qi:|'aG-(:fijCt.§ 91' manufacturing activity a_Evs*,c)V"le'><tV::i_s-";t;1i:JItfV:f§ at the time of sailing the sarraé;'~4i.:.ic5"thé§:Las}}$és;::§3vet.i:"~It appéars even when the storage'. ta¥"1k§§.vv--E5',§'Dé.tiifl:C.ai.i§/viV§?;i.€i"I'iEiOF1€(3 in the definititm ::'i:,i3,:VrV.«VEii.::'):.4?t=if£:V--'aVi'iV.",?Vihttorporating these provisions the 7-be:%;§i»efi't'_Vwtaé' «-éizfitenicied to the assesses. Howevei*~._th*-at cohiiEtj'*J4§é:=3§f"t»ré'r'ih_'ai'nsi In erder to set right this centrotie-r;Sy~.bj/i .aVi'-i_o't'if:i.Cation, specificaify storage tank inVt:*t3diJ__f<:epi wit'h'in...__th€: definitieri of capitai goods. The "--..s'ai.d"'-i::st:VftiiQ:t"'i3_ darificatory in nature, Under these 'year 2Q..G;iafzv.:et are toncemed with the peried ahterier to the I »fS;a§vd'iiihgertiotz, c%r*<':si,it*:"'2Staa**:::7;%j:;";. Even though the saifi insertian was in the 5: Having regard ix} {he aferesaid facts am {ha aiso tha fact that the assessing autherity has hénfsseif exteradeé the benefit 1:3 storage iank gtorérzg V. component ':0 main machinery rtameiy, b0i¥er.,V__%ie..:0uig'hf' have extenéed the benafit ta the $i~.§% é::ig'e' éahks also gar': of the factory premi_ses,4'~..Aé}'1--._whE§i:."_;ftAh'e"
products are stored and thefézffer s"oI':iE._V_a's. -Ia "€j::;i§fiVed product, In that View of./{Abe V §'/.v7€;% fi?0 'hvéf figzd any justification to irV:terfere!_ passed by appeilate autho§"it~;*§3§n tifiosg'.h'§rCuAffi':§taf§.Cé§'syVwe answer the Substarztiai qi,:_Ves.:i"Q,n.$ 'i;:f»i4é"\{i(j;i::1'favourhf the assessee and mhMmmm»m...._'__... . . .