9911796707
TMI Blog2017 (11) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... he period in dispute is January 2010 to December 2010. 2. The brief facts of the case are that, during the period under consideration, the assessee-Appellants were engaged in the manufacture of Motor Vehicle Parts falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985. They were having two separate units, namely, Unit-I and Unit-II within the same premises. The area base exemption was denied under the Notification No.50/2003 dated 10.06.2003. Being aggrieved, the assessee-Appellants have filed the present appeals. 3. With this background, we have heard Shri Hemant Bajaj, learned counsel for the assessee-Appellants and Shri R.K. Mishra, learned DR for the Department. 4. After hearing both sides and on perusa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise purposes as to by which name - whether by name of plant, unit or the like, each set is described. Since each unit cannot be described as a factory, he proceeded to hold that the whole premises should be considered as single entity and exemption was accordingly denied. While examining the decision of Bombay High Court in Devidayal Electronics and Wires Ltd, 1984(16) E.L.T. 30 (BOB.), the original authority erred in not examining the provisions of Notification No.50/03. 7. He records, incorrectly, that the word "industrial unit" has not been used in the said notification. Whereas we note that para 2 of the said notification which talks about application of exemption to different kinds of units clearly states that the said exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble SC in Reckitt Columan of India Ltd., 1997 (92) ELT 457 (SC) held: "in our view, this ground for denial of exemption to cylinder unit is totally incorrect, as held by Apex Court in the case of Reckitt Colman of India Ltd. (supra) each section or part of a factory manufacturing a different commodity has to be treated as separate manufacturing unit. The same view has been expressed by the Apex Court in the case of Himalayan Co-op. Milk Product (supra) and also Hon'ble Bombay High Court in the case of Devidayal Electronics & Wires (supra). Therefore, a factory manufacturing more than one commodity in different sections, has to be treated as consisting of more than one manufacturing units and each section or part of the factory would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al held that terms "unit" and "factory" cannot be accorded the same meaning for the purpose of Notification No.50/03. A notification grants exemption to new industrial units or existing industrial units undertaking substantial expansion. The exemption is not with reference to a factory. This is clear from the wordings of the notification. We also agree that the definition of "factory" under Section 2(e) of the Central Excise Act is much wider and cannot be made applicable to a unit/industrial unit involved in manufacture of specified goods. All such units are necessary part of a factory, if located in the contagious area. Each division of a factory manufacturing different identifiable items or undertaking different identifiable processes wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
