Factory premises scope and natural justice require fresh reconsideration of salt pan registration claims.

Registration of salt pans as part of factory premises turned on the scope of "factory" under excise law and the effect of the exemption-related notification relied on by the department. The authority noted the assessee's contention that the salt pan area was integrated with gypsum manufacture used in caustic soda production, but held that the registration request could not be declined without a fair opportunity to meet objections and without considering relevant submissions. The rejection of inclusion of the salt pans in the registration certificate was set aside and the matter was remitted to the proper officer for fresh consideration by a speaking order in accordance with natural justice.

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Issues: Whether salt pans and salt manufacture could be included in the registration certificate as part of the factory premises, and whether the matter required reconsideration by the proper officer.

Analysis: The dispute turned on the scope of "factory" under the excise law, the effect of the exemption-related notification relied upon by the department, and the assessee's contention that the salt pan area was integrated with the manufacture of gypsum, which was used in the production of caustic soda. The authority also referred to the rule governing registration and to the position that a registration application could not be declined in the manner adopted by the department. Since the assessee had not been given a fair opportunity to meet the objections and the points and authorities relied upon by it had not been considered, the matter could not be finally decided at that stage.

Conclusion: The rejection of inclusion of the salt pans in the registration certificate was set aside and the matter was sent back to the proper officer for fresh consideration after following the principles of natural justice and passing a speaking order.

Ratio Decidendi: Where the department declines registration-related relief without affording an effective opportunity of hearing and without considering the assessee's relevant contentions, the matter must be reconsidered afresh by a speaking order.

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