Single Central Excise registration allowed for factory divisions separated by a road under common management.

Two divisions of the same factory, though separated by a public road, were treated as a single manufacturing unit because they operated under common management and maintained common records. The refusal of single Central Excise registration was held unsustainable, as the precedent relied on concerned distant and distinct factories and did not apply to these facts. Applicable trade notices and the Board's instructions allowed single registration for two premises of the same factory separated by a road, subject to proper accountal of goods movement and compliance with conditions. The impugned order was set aside and single registration was granted for both divisions.

---

---

Issues: Whether the appellant-company, whose Sugar Division and Distillery Division were located in the same premises but separated by a public road, was entitled to a single Central Excise registration.

Analysis: The divisions were found to be part of the same factory and were maintained under common management with common records for income tax and sales tax purposes. The refusal of single registration rested on an erroneous application of a High Court decision dealing with factories at far-flung locations, which did not govern the present facts. The relevant Trade Notice and the Board's notification provided that two premises of the same factory separated by a road could be treated as eligible for single registration, subject to proper accountal of movement of goods and other conditions. The earlier Tribunal decision in an analogous case involving sugar and distillery divisions separated by a road also supported the appellant's claim.

Conclusion: The appellant was entitled to single Central Excise registration and the rejection of its request was unsustainable.

Final Conclusion: The impugned order was set aside and the appellant-company was granted single registration for both divisions.

Ratio Decidendi: Where two divisions of the same factory are situated in the same premises and are separated only by a road, a refusal of single registration cannot be sustained by relying on precedent concerning distant and distinct factories; the applicable administrative instructions permit single registration in such a case.

---