9911796707
TMI Blog1989 (2) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... m 68 in these two units. They filed a declaration before the Central Excise authorities on 20th April, 1982 in terms of Notification No. 111/78 seeking exemption from the Licensing control as the goods manufactured by them were exempt under Notifications No. 68/71, dated 29-5-1971 and No. 105/80-C.E., dated 19-6-1980 and Notification No. 179/77. In one of their two units, they manufacture moulded articles out of duty paid raw materials and they brought the same to their other unit at Wadala for assembly without the aid of power. The Assistant Collector taking into account the quantum of their clearances made under Tariff Item 15A(2) and Tariff Item 68 came to the conclusion that the respondents had exceeded the exemption limits entitling th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in following cases Smt. Shyama Kumari -1982 E.L.T. 329 Chandra Sekara Bharati Weaving Mills v. Assistant Collector of Central Excise -1981 E.L.T. 62 (Madras) The Tribunal in the case of M/s. Jagivandas Co., Thane v. Collector of Central Excise, Bombay-II - 1985 (19) E.L.T. 441 (Tribunal) have held that manufacture of goods by or on behalf of - commonness of partners of different firms does not establish manufacture for or on behalf of one another . In the grounds of appeal, the Revenue have urged the following grounds - The order-in-appeal passed by the Collector of Central Excise (Appeals), Bombay does not appear to be correct in law on the following grounds - (a) Both the decisions of CEGAT and GOI relied upon by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods manufactured by the respondents without the aid of power in the Wadala unit will be eligible for exemption in terms of Notification No. 179/77 and could not be reckoned for working the aggregate value of clearances. We observe that the Collector (Appeals) findings holding the respondents to be eligible for the benefits as claimed by the respondents are on the following two counts - (i) the clearances from two units cannot be combined together and the clearances from both the units should be treated separately; (ii) the goods manufactured in the Wadala unit without the aid of power out of the components manufactured with the aid of power at the Alibag unit cannot be taken into reckoning for arriving at the aggregate value of clearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lector of Central Excise, Madurai [1987 (28) E.L.T. 56 (SC)] in a case where the manufacture of fireworks was not using any power in his unit where the fireworks took shape but was sending some of the raw materials used for the same outside for processing. The required processing was done with the aid of power in other units (not owned by the manufacturer of fireworks) and the processed raw materials were used for making fireworks without the aid of power. The Hon ble Supreme Court has held as under - The claims for refund advanced by the appellants have been rejected on the footing that they are not covered by the Notification of 1977 inasmuch as cutting of wires and conditioning of paper have been carried with the aid of power. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the parts with the aid of power and utilising the same for the manufacture of the goods in the other unit where no power as such is used for giving shape to goods. 5. Following the ratio of the Hon ble Supreme Court, it has to be held that the manufacturer is manufacturing the goods with the aid of power. It is not necessary as held by the Hon ble Supreme Court that the power has to be used in relation to the goods in the unit where the goods finally take shape, so long as the power is used by the manufacturer in the processes relatable to the end product. In the present case, we observe the manufacturer is using power in relation to the component parts which he is manufacturing in his Alibag unit and bringing the same to the Wadala uni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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