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TMI Blog1986 (2) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... Venus Engineering a penalty of five thousand rupees and also directed them to pay Central Excise duty on goods valued three million seven thousand two hundred sixty rupees cleared without payment of duty. The dispute centres round the question whether the number of workers in M/s. Venus factory was more than 50 or less. It said that the manufacturers had shown 40 workers in the factory of production whereas the investigation showed that 15 people worked as workers in addition, in the factory in fabrication work. The Central excise therefore said that the manufacturers were not entitled to the exemption under notification No. 54/75-CE. 3. The learned Counsel for M/s. Venus Engineering argued that 15 workers who did specialised fabrica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under the management and does not include an independent contractor or his coolies or servants who are not under the control and supervision of the employer". 5. We are not able to agree with this because the decision of the Supreme Court was given in very different circumstances. That dispute arose for a failure to maintain the register of adult workers with all the prescribed entries duly filled in and under the latter for allowing the workers to work in the factory without making beforehand the entries of their attendance in the register of adult workers". The court recorded the fact that the management entered into contracts with independent contractors known as sattedars for supplies of beeries locally. The sattedar and his c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , bring into interpretation of the word in the central excise, the meaning given to it in the Factory Act. He quoted in support of his argument, 1985 (19) E.L.T. 15 S.C. - MSCO Private Limited in which the Supreme Court ruled that if there is no definition in a statute, "it must be given the same meaning which it receives in ordinary parlance or understood in the sense in which people conversant with the subject matter of the statute or statutory instrument understand it. It is hazardous to interpret a word in accordance with its definition in another statute or statutory instrument and more so when such statute or statutory instrument is not dealing with any cognate subject". The subject of the Factory Act is far from being cognate with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been paid. There could not have been a more deliberate action to evade payment of duty. There could be no serious doubt in any well meaning person's mind that the 15 or so workers brought to on skilled fabrication work by the contractor would greatly add to the work force of the factory and that it was logical to count them in the number of people working in the factory. The notification speaks of factories "where not more than 49 workers, are working, or were working with the aid of power". The contractors' workers worked with others with the aid of power and this goodly company numbered more than 50. Their work, produced in the factory, goods falling under item 68 of the Central Excise Schedule. We cannot believe that anybody who wants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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