Exemption notification facility test: installed machinery, not operational use, determines eligibility for bleaching and dyeing units.

For exemption notifications denying benefit to processors "having the facility" for bleaching, dyeing, printing or similar processes with the aid of power or steam, the ative test is possession of the requisite machinery and equipment, not whether the plant is operational at the relevant time. Where the machinery remained installed and had not been removed or alienated, disconnection of electricity and dismantling of the motor merely showed that the unit was not being run; it did not mean the facility had ceased to exist. On that basis, exemption under Notification No. 40/95 was denied and the challenge to eligibility failed.

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Issues: Whether the assessee was entitled to the benefit of Notification No. 40/95 when the relevant machinery for bleaching, dyeing and printing remained installed but the power supply was disconnected and the motor dismantled.

Analysis: The notification denied exemption to a processor having the facility for bleaching, dyeing, printing or similar processes with the aid of power or steam. The decisive factor was whether the assessee possessed the necessary equipment and machinery, not whether those facilities were actually operational at the relevant time. Disconnection of electricity and removal of the motor showed only that the machinery was not being run. It did not mean that the assessee had ceased to have the facility, since the relevant plant and equipment had not been removed or alienated.

Conclusion: The assessee was not entitled to the exemption under Notification No. 40/95 and the objection to eligibility failed.

Final Conclusion: The appeal was rejected, and the denial of exemption was sustained.

Ratio Decidendi: For purposes of an exemption notification excluding units "having the facility" for specified processes, the test is possession of the requisite machinery and equipment, not whether the machinery is operational at the time.

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