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TMI Blog1987 (4) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... men at its factory. According to the petitioner w.e.f. 17th of December, 1974, the number of workmen at this factory were not more than 38. It has been the admitted case that the factory of the petitioner works with the aid of power. 3. By the Finance Act of 1975 a new Tariff Item No. 68 was inserted in the first schedule to the Central Excises and Salt Act. The said item read as follows : "68. All other goods, not elsewhere specified, manufactured in a factory but excluding ; (a) alcohol all sorts including alcoholic liquors for human consumption, (b) opium, Indian hamp and other narcotic drugs and narcotics; and (c) dutiable goods as defined in Section 2(c) of the Medicinal and Toilet preparations (Excise Duties) Act, 1955. Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w item will be chargeable to a nominal duty at the rate of 1 per cent ad valorem. While the tariff item will cover the production of all factories as defined in the Factory Act, 1948, I propose for the sake of administrative convenience to exempt the production of those factories which employ not more than 49 workers in the case of power-operated factories and not more than 99 workers in the case of non-power operated factories. To further simplify the levy, also propose to exempt from duty intermediate products and component parts falling within this item produced in and consumed within the same factory for manufacture of finished goods. No countervailing duty will be levied on imported goods corresponding to this new item." 4. Rule 8 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel that the then Finance Minister had categorically stated that the exemption from the levy under Item 68 was sought to be given to those factories which were employing not more than 49 workers in the case of power operated factories as on that day. In this speech there was no reference to factories employing more than 48 workers on any day in the twelve preceding months. 6. It is true that in the speech of the Finance Minister it is stated that exemption will be granted from the operation of Item 68 to those factories which employed not more than 49 workers in the case of power operated factories. But the speech of the Finance Minister cannot be regarded as a piece of legislation, subordinate or delegated. The Finance Minister in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under the impugned notification. 8. It will be seen that Item 68 of the First Schedule makes a reference to the factories as defined by the Factories Act. Under Section 2(m) a factory means any premises including the precincts thereof wherein 10 or more workers are working or were working on any day of the preceding twelve months where the manufacturing process was carried on with the aid of power. It will, therefore, be seen that when one is examining the question as to whether the premises is a factory or not what has to be taken into consideration is not only the number of workers working on that particular date but what is relevant is the number of workers who worked in the twelve preceding months. It is this concept which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excises and Salt Act. This item reads as follows : "17. FOOTWEAR, produced in any factory including the precincts thereof whereon fifty or more workers are working or were working on any day of the preceding twelve months, and in any part of which manufacturing process is being carried on with the aid of power or is ordinarily so carried on, the total equivalent of such power exceeding two horse-power". The Supreme Court held that it was a fallacy to assume that there could be no classification of manufacturers on the basis of the number of workers or the employment of power above a particular horse power. Manufacturers who employed 50 or more workers could be said to form a well defined class. The impugned notification in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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