1983 (5) TMI 238 - AT - Central Excise

Summary

Issues: Interpretation of "industrial unit" for exemption under Notification, Separate legal entities for Central Excise purposes

In this case, the appellants manufactured goods under Tariff Item 68 and sought exemption from duty under Notification No. 89/79. The Lower Authority held that the term "industrial unit" in the notification referred to the entire industrial complex of the appellants, including various goods produced, and denied the exemption based on the total capital investment exceeding ten lakhs. The appellants argued that each manufacturing unit was independent, maintained separate accounts, and deserved the exemption. The main issue was whether the units could be considered separate for Central Excise purposes. The Tribunal directed the appellants to provide documents for assessment. It was revealed that the factories were separate divisions with individual Central Excise licenses, but had a single Sales Tax assessment and were assessed as one entity for Income Tax purposes. The appellants contended that despite the single assessments, they should still qualify for the exemption. The Respondent argued that the term "industrial units" did not equate to the entire factory complex. After reviewing the submissions and documents, the Tribunal upheld the Lower Authority's decision, stating that the units not being distinct legal entities did not entitle the Company to the exemption. The Tribunal found the language of the notification clear in including all goods produced, not just those under Tariff Item 68, in the capital investment calculation, leading to the rejection of the appeal.