1983 (2) TMI 167 - AT - Central Excise

Summary

Issues: Excisability of gold produced from gold bearing ore under Central Excises and Salt Act, 1944

In this case, the main issue revolves around the excisability of gold produced by the appellant firm from gold-bearing ore under the Central Excises and Salt Act, 1944. The Assistant Collector of Central Excise, Bellary, initially held that the gold fell under Item 68 of the Central Excise Tariff and was liable for duty. The dispute escalated to the Appellate Collector who upheld the Assistant Collector's decision.

The appellant's argument throughout the proceedings was that Item 68 of the Central Excise Tariff applied only to goods manufactured in a factory. They contended that the Hatti Gold Mines, where the gold was extracted, fell within the definition of a "mine" under the Mines Act, 1952, and therefore, was excluded from the definition of a "factory" under the Factories Act, 1948. The appellant presented letters from the Director of Mines Safety and the Chief Inspector of Factories and Boilers supporting their position that the mill at Hatti Gold Mines was not considered a factory under the Factories Act. The Government of India had also accepted this position in a previous Revision Order.

Based on the evidence and arguments presented, the Tribunal concluded that the mill where gold was recovered from the gold-bearing ore was not a factory as per the Factories Act. Therefore, the gold produced there would not attract excise duty under Item 68 of the Central Excise Tariff. Consequently, the Tribunal set aside the Appellate Collector's order, allowed the appeal, and directed that consequential relief be granted to the appellant within 60 days from the date of the order communication.