9911796707
TMI Blog1985 (1) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... pearing on behalf of the appellants, stated that the appellants, for the last many years, have been manufacturing sheets/circles of copper and copper alloys, apart front manufacturing billets from scrap or duty-paid virgin metal. The billets fall under Item 26A(1) of the Central Excise Tariff and are fully exempt under Government of India Notification No. 119/66-C.E. dated 16th July, 1966, as amended. Exempted billets are stored in the relevant premises along with old scrap and duty paid metal received from Government agencies as well as cuttings of duty paid sheets and circles. Duty paid un-cut sheets and circles received from the adjoining premises after payment of duty and against duty paying documents, are also kept here. The duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri B.N. Banerji, then Member, Central Board of Excise and Customs, who accompanied by the then Collector of Central Excise, Shri S.C. Mathur, had also visited the factory. Later on, it was claimed that the factory was also visited by the then Collector of Central Excise, Shri B.D. Deshmukh, who was satisfied with the segregation of the premises. The issue, once having been settled and having become the established practice over long years, should not have been re-opened in 1979. In fact, when the matter went up in appeal to the Central Board of Excise and Customs, the CBEC had remanded the matter back to the Collector of Central Excise, directing that the fact that the appellants had enjoyed the facility over such a long time could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealing with the above arguments, on behalf of the appellants, Shri Mehta stated that the Collector s observation that both the units are dependant on each other and hence cannot be treated as separate units is erroneous in law. In the unit manufacturing billets, the product is exempted under Notification . No. 119/66 dated 16-7-1966. Under Government of India Notification No. 31/76 dated 28-2-1976, fully exempted copper and alloy units were wholly exempted from licensing control. There was also a general exemption under Notification No. 111/78 dated 9th May, 1978, duly exempting units manufacturing exempted goods from licensing control. It has been pointed out by Shri Mehta that the Collector s contention that the two manufacturing units we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer is required to submit ground plan only in respect of the premises wherein excisable goods are manufactured. 10. It is further stated that the Collector s view that there is no documentary evidence in support of the appellants contention that the existing arrangement as regards licensing had the approval of the then Member, Board or of the two former Collectors is not maintainable, since this fact has not been denied by the Excise authorities. 11. Shri K.C. Sachar, JDR, has reiterated before us the views expressed by the Collector. He has also pointed out that the appellants cannot rely on the judgment of the Hon ble Delhi High Court in Sulekh Ram Sons v. Union of India, as this judgment has been over-ruled by the Hon ble D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing mill undertaking the manufacture of billets as well as sheets and circles, and that a licence should be taken out for the entire composite unit. What has weighed with the Collector in taking this view is the fact that the two units are having common partners, that both the Sections are located in the same premises and that billets manufactured in one unit are used in the other rolling unit and that, therefore, the two units are dependant on each other . Besides, these two Sections it is stated are not separately registered under the Factories Act. We are unable to concur with these views. As these two units are separated completely by a wall, it cannot be argued that they are operating in the same premises . Furthermore, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff in premises clearly separated by a boundary-wall he would be within his rights to request for separate licences for the two premises, in this particular case, the goods that are being manufactured in one of the units, namely, billets, are wholly exempt from Excise Duty. Also, there is a separate notification exempting such units from licensing control. In the circumstances, the action of the Department in asking the appellants to take out a licence for this unit either separately or as a part of the adjoining premises is not maintainable in law. This action cannot be supported by bringing in arguments either of dependance of the two was on each other or that the raw material, for the manufacture of sheets and circles would be not the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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