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TMI Blog1989 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assistant Collector of Central Excise Division, Jullundur in Annexure A-2 holding them liable for Rs. 8,467.32 P. on the Fibre Recovery plant under Rule 173Q of Central Excise Rules, 1944 and not granting them the benefit of Notification No. 118/75-C.E. 2. The brief facts of the case are that the appellant are engaged in manufacture of paper falling under Tariff Item 17 of the Central Excise Tariff. The raw materials have to pass to the stage of pulp before the finished stage of paper is attained. The process of preparation of pulp involves grinding the raw materials and making a paste after mixing in water. The water keeps on draining out leaving a thin paste sheet which subsequently requires the shape of a paper after passing throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 118/75 and instead imposed duty of Rs. 8,467.32 P. and personal penalty of Rs. 1,000/-. He also ordered for confiscation of the seized Fibre Recovery Plant and ordered the same to be redeemed on payment of a fine of Rs. 5,000/-. 3. The appellant aggrieved by the said order preferred an appeal before the Collector (Appeals), New Delhi. The learned Collector set aside the Assistant Collector s order only to the extent of imposition of penalty and confiscation of the plant but however, rejected the plea of the appellant for Exemption Notification No. 118/75 on the ground that the plant was capable of processing the waste material and recovering retrieving usable fibres from waste material going into the effluent water. The appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the fibres particles which were going waste in the effluent water and the function of the plant is not producing or processing of goods but merely to retrieve or segregate the water fibre particles from effluent water. 6. The Departmental Representative for the respondent contended that the plant is a complete machinery and the function of the plant is to produce or processing of goods. To emphasise his point, he pressed into argument the definition of Factory in Section 2(c) and that of manufacture in Section 2K of the Indian Factories Act, 1948, 7. For the purpose of analysing the definition of manufacture and of processing of goods, we have to confine ourselves to the definition and interpretation of definition as found in the Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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