What is the meaning of the term "Same Factory"?

Certain notifications have been issued Customs, to grant exemption from CVD (countervailing duty of customs which is equivalent to duties of central excise) subject to the conditions that the imported goods must be used within the same factory.

The term "same factory" has not been defined in the notification. Therefore, honorable Supreme Court has said that:

"The expression "same factory", therefore, in our opinion, would mean the factory where the goods are actually manufactured. It only means that the imported goods are required to be used in the factory belonging to the importer where the manufacturing activity takes place. There is nothing in Section 3 of the Act and in particular the explanation appended to Sub-section (1) thereof mandating actual production or manufacture in the said factory itself. There cannot be any doubt whatsoever that if excise duty is not leviable on manufacture of goods, the question of the importer paying any additional duty for import of like goods would not arise."

For full text of judgment - visit

COMMISSIONER OF CUS. (PRV.), AMRITSAR Versus MALWA INDUSTRIES LTD. 2009 -TMI - 32788 - SUPREME COURT