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TMI Blog1992 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the value of plants and machinery installed in the appellants factory was more the limit set out in the Notifications for the purpose of eligibility to the exemption notifications and for that reason therefore the appellants had wrongly availed of the benefit of the said exemption in respect of the goods cleared by them and the appellants were held to be liable to pay duty amounting to Rs. 3,56,788.14 besides a penalty of Rs. 35,000/-. 2. The learned Consultant for the appellants pleaded that for the purpose of reckoning the value of Plant and machinery installed in the appellants factory they have not included the value of crane and accessories and also slicing machine installed in the unit and pleaded that the value of these equip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclared before the authorities the value of Plants and machinery installed in their factory as Rs. 17,92,908.60 and after filing this declaration they came to install Crane and slicing machine in the factory. They did not make the authorities aware of the installation of Crane etc. as additional equipment or machinery in their factory and it was only when the audit of the Unit was taken up by the Accountant General that this fact came to be noted. In the balance sheet the appellants have included the value of the material handling equipment. Not having informed the authorities in respect of the same the learned Collector has rightly observed that the appellants have suppressed the fact in regard to the same. The appellants only plea is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talled in the factory can be considered as part of the Plants and machinery installed in the factory and so long as these are participating in the process of manufacture the value of the same has to be included. Therefore the only point to be considered is whether movement of stone slabs can be taken to be as part of process of manufacture. We observe that in the case of manufacture of a product, the process can be in the nature of preparatory to the stage in which the actual manufacturing process of a product takes place or can be in the nature of an ancillary process after a product comes into existence. The process preparatory to the manufacture can be in the nature of pre-treatment of materials or even water as in the case of Paper Mill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in the case of Collector of C. Ex. v. Rajasthan State Chemical Works and Others - reported in 1991 (55) E.L.T. 444 (S.C.) = 1991 4 Supreme Court cases 473 has held as under : (paras 13 21.). Manufacture thus involves series of process. Process in manufacture or in relation to manufacture implies not only the production but the various stages through which the raw material is subjected to change by different operations. It is the cumulative effect of the various processes to which the raw material is subjected to (sic that the) manufactured product emerges. Therefore, each step towards such production would be a process in relation to the manufacture. Where any particular process is so integrally connected with the ultim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kes place. The whole process is an integrated one consisting of the lifting of the raw materials to the platform mixing coke and lime and then feeding into the kiln and burning. These operations are so interrelated that without any one of these operations manufacturing process is impossible to be completed. Therefore, if power is used in any one of these operations or any one of the operations is carried on with the aid of power, it is a case wherein or in relation to the manufacture the process is carried on with the aid of power ; Therefore, in relation to the manufacture of a product, it would be seen that processes which are integrally connected with the manufacture of a product has to be held to be part of manufacturing process. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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