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TMI Blog2009 (4) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 607/05, basically supporting the order of the Commissioner. 2. Heard both sides extensively. 3. The basic dispute is whether three manufacturing facilities of the respondent namely M/s. Khanna Paper Mills Ltd., are to be treated as three different factories as claimed by the respondents or as three different units of the same factory as claimed by the Department. If the views of the respondents are accepted, then each "factory" is eligible for separate exemption up to specified quantity of the paper and paperboards in terms of the analogous Notifications Nos. 28/96, dated 11-9-1996, 4/97-C.E., dated 1-3-1997, 6/2000, dated 1-3-2000, 3/2001, dated 1-3-2001 and 6/2002, dated 1-3-2002 each one of them covering different periods. 4. To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturer and not with reference to quantity cleared from individual factory. However, this condition linking the quantum exemption to the manufacturer has been consciously changed by Notification No. 23/94, dated 1-3-94 and the subsequent Notifications No. 28/96, 4/97, 6/2000, 3/2001 and 6/2002, by linking to clearance from a factory. 6. Show cause notices were issue alleging that the three units were in common premises of 45 acres of land with common boundary walls; that the units were under common management; that they shared several facilities like boilers for producing steam (which is essential for manufacture of paper), common lab for testing and common administrative office etc. Party contested the show cause notices claiming that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in the case of Grauer & Weil (India) Ltd. v. C.C.E., Baroda reported in 1994 (74) E.L.T. 481 (S.C.) in the context of Notification No. 46/81-C.E., dated 1-3-1981 wherein it was held that two units belonging to the same company situated on a common plot of land, when goods manufactured by one unit forming input of the other unit should be treated as one factory. 8. Learned Advocate strongly defended the order of the Commissioner and drew our attention to the elaborate finding of the Commissioner on each of the issues. He particularly drew our attention to the findings of the Commissioner that the three factories have been formed at different point of time under different legal entities; that the three factories were having separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany or the fact that there were some persons attending to some work relating to more than one unit or the fact there was certain financial adjustments between the three units is of no significance. These evidence cannot lead to conclusion that the factories set up at different point of time by different legal entities can be treated as a single factory. We are also in agreement with the findings of the Commissioner that the three factories were having separate boilers registered separately with the boiler department; and that the three factories had separate laboratories and the common facility was a lab which was meant only for special testing, as the department has not refuted the same with supporting evidence. 9.2 We find that this is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the order of the Tribunal passed on June 7, 2002 as well as the order passed by the Commissioner, Central Excise, New Delhi-III on September 28, 2001 in both the appeals. No order as to costs." 9.3 The decision of the Hon'ble Supreme Court in the case of Grauer & Weil (India) Ltd. cited supra relied upon by the Department is not directly relevant to the present case as the same have been rendered in the facts of the particular case taking into account the conduct of the assessee as recorded in paras 15 to 17 which are reproduced below : "15. In our opinion from the above facts and circumstances when taken together, a reasonable conclusion can certainly and legitimately be drawn that the appellants wilfully and deliberately made mis- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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