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TMI Blog2005 (6) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... .C. Sankhla, SDR, for the Respondent. [Order per : Justice R.K. Abichandani, President]. - The applicant is praying for dispensing with the payment of the impugned demand of duty of Rs. 2,45,92,972/- and penalty of Rs. 10 lacs, ordered by the Commissioner by his Order dated 31st January, 2005. The assessee is engaged in the manufacture of lead and zinc concentrates falling under Chapter 26 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .The learned Counsel appearing for the applicants submitted that the very process of mining undertaken by the assessee, involved a process of manufacturing lead and zinc concentrates. He submitted that the definition of word 'factory' under Section 2(e) of the Act, was wide enough to encompass even such process of digging out the rock material, which was to be used by the assessee for manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g excavated in the mines and the factory of the manufacturer was some distance; while, in the present case, the factory was located in the leased area itself. It is difficult to accept this distinction, because in J.K. Udaipur Udyog case, the Supreme Court by referring to the definition of word 'factory' laid clear emphasis on the fact that the raw material was not extracted 'in the factory premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned order, that the mines were not part of the factory. It is, therefore, difficult, at this stage, to give any wider meaning to the definition of the word 'factory' in the context of manufacturing process carried out by the assessee or to the concept of "manufacturing process" in the context of the manufacture of the subject goods. The decisions in Ardeshi H. Bhiwandiwala v. State of Bombay (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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