Prima facie exemption under Notification No. 74/93-C.E. extended to workshop goods treated as factory products for interim stay.

Notification No. 74/93-C.E. was treated as prima facie applicable to goods manufactured by a State Government-owned electricity board, where the goods were produced in a workshop functioning as a factory for excise purposes. The Tribunal relied on an earlier decision applying the notification to a State Electricity Board and rejected, at the interim stage, the Revenue's objection that the workshop was not a factory. On that basis, the applicant was found entitled to stay of recovery of the duty demand pending hearing of the appeals.

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Issues: Whether the applicant was prima facie entitled to the benefit of Notification No. 74/93-C.E. dated 28-2-1993 so as to justify stay of recovery of the duty demanded, and whether the workshop where the goods were manufactured could be treated as a factory for the purpose of the notification.

Analysis: The Tribunal noted that an earlier decision had already held the notification applicable to goods manufactured by a State Electricity Board. It was also noticed that the applicant was owned by the State Government and that the goods were manufactured in a place described as a workshop, but functioning as a factory of the Electricity Board for excise purposes. On that basis, the notification was found prima facie applicable and the Revenue's objection that the workshop was not a factory was not accepted at this stage.

Conclusion: The applicant was held entitled to stay of recovery pending hearing of the appeals.

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