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TMI Blog1984 (7) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Excise, Ahmedabad, alleging that they had manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries 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 Excise, however, has not gone into this question at all and has wrongly assumed that these items were liable to payment of excise duty. The equipment valued at ₹ 19,88,940 consisted of Storage tanks, Steam trap tanks, Asbestos/Magnesia Laggings Pipe and pipe fittings etc. for the different plants in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 ₹ 19,88,940/- should be deducted out of the total value of the machinery subjected to duty by the Collector. Shri Trivedi, however, after some arguments agreed that the excise duty could be charged only on the balance of the items totally valued at ₹ 12,36,054. Shri Lakshmi Kumaran, SDR, referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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