9911796707
TMI Blog1984 (7) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants are engaged in the manufacture of the following excisable goods in the factory; namely, Soap, Glycerine and Industrial hard oil. For the purpose of manufacture of these products, they have the following plants installed in their factory, namely, Soap Plant, Glycerine Plant and Industrial Hard Oil Plant. For fabrication and erection/ installation of the said plants, they had entered into a contract with M/s. Achra Welding and Engg. Works, Jamnagar, according to which the latter were required to carry out fabrication and erection of new installations of the aforesaid plants from the materials supplied by the appellants and under their supervision. A Show Cause Notice was issued to them on 19-11-1981 by the Collector of Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 6. Hydrogen Gas Cells 56 The last item, namely, the Hydrogen Gas Cells, were got manufactured in the premises of another firm, namely, M/s. Kumtakar Industries, Jamnagar. Both the said units namely, M/s. Achra Engg. Works and M/s. Kumtakar Industries were not 'factory' within the meaning of section 2(m) of the Factories Act, 1948. Accordingly, all these items should be exempted under Notification No. 85/79, dated 1-3-1979. The appellants have argued that the statement of Shri Kumtakar, partner of Messrs Achra Engg. Works was recorded on 12-9-1980 wherein he has explained the facts which would qualify these goods for exemption from duty. The Collector of Customs and Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since they cannot be regarded as complete machinery. 2. Shri N.C. Trivedi, Advocate for the appellants, while reiterating the above arguments at the hearing submitted that the excise duty could not be levied on the items valued at ₹ 10,39,407/- which were admittedly manufactured in premises which could not be considered as "factory" under the Factories Act, 1948. He, however, agreed that the necessary evidence to this effect had not been led and the CCE Ahmedabad has not given any finding on this aspect of the case. He vehemently argued that the storage tanks etc. which have been constructed and fabricated in connection with the aforesaid plants cannot be considered as "machinery" and, accordingly the total value amounting to &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jamnagar, and Messrs Kumtakar Industries, Jamnagar, it is necessary for the Collector to investigate whether the concerns which fabricated these goods (valued at ₹ 10,39,407) were 'factory' under the Factories Act, 1948. The appellants will also have to lead evidence in support of their plea that these items were manufactured in premises which were not 'factory'. Regarding the other batch of items consisting of storage tanks, steam trap tanks, pipe and pipe fittings etc., totally valued at ₹ 19, 88,940/-, no excise duty is leviable on these since they could not be considered as complete machinery and, therefore, were eligible to exemption under Notfn. No. 118/75, dated 30-4-1975. The balance of the items valued at ₹ 12,28 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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