Correct, that's the catch can down near the air filter. The intake side of the PCV is joined to the outlet of the catch can. It is against emission laws to vent the engine vapours to the atmosphere so the proper way to do it is to connect the catch can to the intake. A good catch can should have baffles inside which trap the oil.
The PCV is there to regulate pressure within the engine, it's not meant to be a passage for oil. The build-up in pressure within the engine causes air (and with it, oil and oil vapour) to flow from the engine to the intake.
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