TMI Blog1983 (2) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ites, Phosphates and Chemicals Ltd., are a Government of India concern and are engaged in the mining of pyrites at Amjhore in the State of Bihar. The pyrites come out in the form of lumps and the bigger lumps are used in the manufacture of sulphuric acid while the smaller lumps (after crushing) are used for agricultural purposes in Uttar Pradesh and Bihar. The mining of pyrites by the respondents was commenced during the years 1967-68 and initially the low grade pyrites or smaller lumps were being dumped in and around the mine as refuse. After doing some research work in the matter, the respondents found that by manually screening such refuse, the same could be put to use for agricultural purposes and since then they started supplying the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ector of Central Excise, Patna and allowed the appeal on the ground that the levy of duty under Central Excise Tariff Item No. 68 could not be made applicable as the pyrites lumps were being crushed within the mine premises and also the crushing would not result in the manufacture of a new commodity. The Government of India decided to review the order passed by the Central Board of Excise and Customs and issued a Notice to the appellants calling upon them to show cause to the Government as to why the order of the Board be not set aside and why the Collector s order be not restored. Further, pending decision by the Government in the proceedings, the operation of the order of the Board had been stayed, 3. At the outset the prayer of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actory or not. He has also drawn our notice to the clarification given by the Director-Genaral, Mines Safety vide his letter No. 5(1) 81-Genl/1338 dated 6-2-1982 stating that the crushing plants, automobile workshop and three power houses were adjacent to the mining lease area and the working in those is being done exclusively for the mines and hence they come within the definition of the mine as per section 2(l)(j) of the Mines Act, 1952. Shri Kampani claimed that the crushers are exclusively used for crushing the refuse of the pyrites and that they are located within the precincts of the mine and they are under the same management and as such, in the absence of any exemption notification by the Central Government, the premises would clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chemical structure remains the same. He also referred to certain other decisions of various High Courts in support of his argument to establish that crushing or powdering is not manufacture. Thirdly, he argued that no evidence had been produced by the department to show that the product is marketed as kala-khad , and as against that the respondents could show their bills, invoices and other documents indicating the same as A.G. Pyrites. He went on to argue that even if it is conceded that it is kala-khad , which means Black Fertiliser it gets the benefit of exemption from the duty of excise available to fertilisers. 6. Smt. Vijaya Zutshi on behalf of the Department argued that the low grade pyrites were being supplied to crushing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (J 336), Hyderabad Asbestos/Cement Product Ltd. v. Union of India 1980 E.L.T. (Del.) 735, P.C. Cherian v. Mrs. Barfidevi E.L.T. 1979 (SC) 593, Kores (India), Ltd. v. Union of India 1982 E.L.T. (Bom.) 253 and Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan, 1980 E.L.T. (SC) 383 and since in this case a new and different article with a different name, character and use has come out of the manufacturing process, it normally falls within the definition of manufacture and the premises on which the whole manufacture is being carried on, not being adjacent to the mine, should be categorised as factory. She concluded by stating that it this new product will definitely fall under Tariff Item No. 68 and as such it attracts the duty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en therein since the crushing process in the instant case cannot be treated as manufacturing process. Further we agree with the contention of the respondents to the effect that the premises where the crushing of pyrites is being carried on will fall within the definition of section 2(l)(j) of the Mines Act, 1952 since the premises are adjacent to the mine and on these premises crushing is carried on for getting low grade pyrites prepared for sale. Thus, this would squarely fall within (he ambit of Item (X) of Section 2(l)(j) of the Mines Act, 1952. As regards Shri Raghavan Iyer s contention of the definition of mine, it can only be stated that it is for the legislature to assign the necessary meaning, either restricted or extensive, to a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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