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TMI Blog1986 (11) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... tant Collector rejected the claim of the appellants under Notification No. 150/83, dated 13-5-1983 relating to higher production. The Assistant Collector held that the factory was closed for 81 days during the year 1982-83 and on this basis by applying the formula given in the notification arrived at the conclusion that the appellants were not eligible for any relief under the notification for the year 1983-84. 4. The appellants have claimed that apart from the fact that there was no such mention in the show cause notice, the finding of the Assistant Collector that their factory was closed for 81 days was not based on evidence. While admitting that they had not made any excess clearance nor produced any weighing machines and scales during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 6-10-1982 to establish that the manufacturing process had not altogether stopped. The visitor's register was also produced to show that during the relevant period a number of personnel like suppliers of raw materials had been visiting the factory. Reliance has also been placed on copies of certain electricity bills for the relevant period in support of their claim that electricity consumption in the factory had not gone down very substantially. It has also been stated that Shri S. Rajaram, the Works Manager of the factory during the relevant period, had filed an affidavit confirming that the factory was not closed during the relevant period; it had only worked at a slower pace because of labour disturbances etc. In the appeal, it was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be taken to mean only that portion where manufacture of the specified goods were usually undertaken. But once the meaning given in the Central Excises and Salt Act is adopted, this interpretation has to be automatically dispensed with because in fiscal matters, the construction most beneficial to the assessee must be applied. On these points, the following detailed submissions have been made :- "The meaning and connotation of phrase "in the case of a factory which had not remained closed" as used in Notification No. 150/83 dated 13-5-1983 - (a) In its factory at Ballabhgarh, the appellant manufactures weighing scales and weigh bridges and for that purpose it has to manufacture the components that go into the assembly thereof. For all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the legislative intent in the clearest and most precise manner, (AIR 1972 SC 554). This being so, no more is necessary than to expound this word in its natural and ordinary sense, the word "factory" in this case best declaring the intention of the legislature (AIR 1961 SC 1549). (d) Not only this, the word "factory" not only harmonizes but best effectuates the concept of "manufacture" in the Act, which is the genesis of levy and exemption of duty under the provisions of Central Excises and Salt Act and its Rules. (e) In the context of Sugar Production Incentive Scheme, a Division Bench of the Hon'ble Madras High Court in its judgment reported in 1980 ELT 10 in para 9 ruled as under: "...... If the language is deficient to bring out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context, I cited before you the case of Mohinder Singh Gill v. Chief Election Commissioner decided by Supreme Court of India reported in AIR 1977 SC : "When a statutory functionary makes an order based on certain grounds, its validity must be judged by the reasons so mentioned and cannot be supplemented by the fresh reasons in the shape of affidavit or otherwise. Otherwise, an order bad in the beginning may, by the time it comes to court on account of a challenge, get validated by additional grounds later brought out". To a similar effect is the judgment of Hon'ble CEGAT reported in 1983 (14) ELT 1830. 8. The department's interpretation could have been accepted if it were mentioned in the notification that the formula under Explanation ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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