Exemption for inter-factory use of steam upheld where goods were used in another factory of the same manufacturer.

Notification No. 118/75 extended exemption to goods manufactured in one factory and intended for use in any other factory of the same manufacturer. On that reading, steam generated in the assessee's sugar factory and used in its distillery satisfied the substantive condition of the notification, so the exemption remained available. The objection based on non-compliance with Chapter X of the Central Excise Rules, 1944 was not pressed before the Tribunal and did not form the basis of its decision, so it did not affect the claim. The text states that no substantial question of law arose and that the exemption was rightly available to the assessee.

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Issues: Whether Notification No. 118/75 dated 30 April 1975 extended exemption to steam manufactured in one factory of the same manufacturer and used in another factory of the same manufacturer, and whether non-compliance with Chapter X of the Central Excise Rules, 1944 affected the claim.

Analysis: The notification exempted goods falling under Item No. 68 of the First Schedule to the Central Excises & Salt Act, 1944 when manufactured in a factory and intended for use in that factory or in any other factory of the same manufacturer. The steam generated in the sugar factory was used in the distillery of the same assessee, so the substantive condition of the notification was satisfied. The challenge based on Chapter X was not pressed before the Tribunal and did not form the basis of the Tribunal's decision. On that footing, no substantial question of law arose.

Conclusion: The exemption was rightly available to the assessee, and the challenge failed.

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