2001 (1) TMI 129 - AT - Central Excise

Summary

Issues involved: The issue involved in the appeals is whether the benefit of Notification No. 67/95-C.E. is available in respect of Molasses used in the manufacture of chemicals by M/s. The Dhampur Sugar Mills.

Judgment Summary:

Issue 1 - Factory Premises and Registration: The Appellants argued that despite having separate registrations for different units within the same factory premises, they should be considered as one factory for the purpose of availing the notification benefit. They cited the definition of "factory" under Section 2(e) of the Central Excise Act and previous tribunal decisions to support their claim. The Revenue contended that separate registrations imply separate factories, relying on a Bombay High Court decision regarding "industrial unit." The Tribunal noted that the number of registrations does not determine the number of factories unless they are in different premises. Since all units were within the same premises, they were considered one factory, in line with previous tribunal rulings. The High Court's interpretation of "industrial unit" was deemed not applicable in this context. Therefore, the benefit of the notification was granted as the excisable goods were used within the factory of manufacture.

Final Decision: Both appeals were allowed, and the benefit of Notification No. 67/95 was deemed available to the Appellants as the excisable goods were used within the factory of manufacture.