9911796707
TMI Blog1981 (3) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... which the said goods are manufactured is not a factory within the meaning of the Factories Act, 1948. According to the petitioners, factory as defined in the Factories Act, 1948, is, inter alia, a "premises with its precincts thereof". Relying on the dictionary meaning of the word premises, the petitioners contend that in order to be called a factory there should be a house or building with its ground and precincts thereof, since there is no house or building in the open yard in which the said goods are being manufactured, the same should not be treated to be factory and, therefore the goods produced therein are not excisable under item 68 of the Central Excise Tariff; (ii) there is no evidence to show that the petitioner had engaged more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isable then for the purposes of assessment of the said boats, the value of the engine which was supplied by their customers for installation if the said boats should not be included in the assessable value of the impugned goods because the engine was not an integral part of the boat and was only in the nature of an accessory and also because the installation of the said engine was mere job work for which the petitioners were entitled for the benefit of Notification No. 119/75 dated 30-4-1975. 3. Government, however, observe that the word 'premises' in the context of the word 'factory' has been defined in 'The Law Lexicon' by Mukherjee as a generic term meaning "open land or land with building or buildings alone". "It is not correct to say ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It would also be irrelevant to determine whether power has been used in the manufacture of the said boats since there is evidence to show that more than 100 workers had been engaged by the petitioners in the activity of building boats. 5. Government further observe that the boats in question are of special design and are in the nature of mechanised craft and their manufacture is not complete without installation of the engine. It is, therefore, obvious that the engine is not an accessory of the boat but is an integral part of the boat without which the said boat cannot be operated. In the circumstances the petitioners' contention that the installation of the engine amounts to mere job work is also not correct because what is returned t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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