TMI Blog2004 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered with the Central Excise Department. The staff is separate, their management is separate. It is also not the case of revenue that end product of one factory is raw material for the other factory. From the above facts it is apparent that there is no commonality between the two factories, both are separate establishments run by separate Managers though at the apex level it is maintained by the appellant company. There are separate staff, separate finished goods. Simply because both the factories may have common boundaries that will not make it one factory. Accordingly, we are of the opinion that the view taken by the Tribunal does not appear to be well-founded and likewise, the view taken by the Commissioner, Central Excise. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... independently with its own set of plant and machinery, staff and workers, raw material and utilities like electricity, water etc. Prior to May, 1998, the Specialty Paper Factory was situated at Dharuhera with accumulated stock of finished goods. The appellant decided to transfer such finished stock of Specialty Paper Factory to Paper Board Factory and dispose of the accumulated stock of finished goods under the Central Excise registration issued to Paper Board Factory. The ground plan of the Paper Board Factory prior to May, 1998, showed Shed No. 3 as a godown for storage of its raw material, namely waste paper. Thereafter, the ground plan was amended in May, 1998, to show the Specialty Paper Factory in Shed No. 3 for storing the finished g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrenders the same. Therefore, both the factories were granted separate registration. It was also pointed out that no manufacturing processes pertaining to the manufacture of paper board was carried on in the Shed No. 3 for which Specialty Paper Factory was granted registration. Only manufacturing processes for manufacture of paper were carried on in Shed No. 3. It was also stated that both the factories had their separate entrances and are separated by a clear passage of 10 ft. 4. The Central Excise Department issued a notification being Notification 6/2000-Central Excise, dated March 1, 2000 and as per Serial No. 77 of the aforesaid notification, paper and paperboard or articles made therefrom in a factory is chargeable to 'nil' rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the order of the lower authority and came to the conclusion that they are one and accordingly, affirmed the duty as well as the penalty. 7. There is no two opinion that both the factories are near to each other and it is owned by the same owner and the common balance sheet is maintained. But, by this can it be said that both the factories are one and the same ? The definition of the 'factory' as defined in Section 2(e) of the Central Excise Act, 1944, reads as under : "(e) 'factory' means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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