Exemption for goods used in another factory of the same manufacturer depends on documentary proof of final use and common ownership.

Notification No. 118/75-Central Excises was treated as extending to excisable goods manufactured in one factory and cleared for use in another factory of the same manufacturer. The exemption applied only where the proper officer was satisfied, on documentary evidence, that the goods were finally used in the other unit and that both factories were under common ownership. The operative effect was that the benefit depended on proof of final use and ownership conditions being met, with the Assistant Collector required to verify those facts before granting exemption.

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Issues: Whether the exemption under Notification No. 118/75-Central Excises dated 30-4-1975 was available for excisable goods falling under item 68 of the First Schedule of the Central Excises and Salt Act, 1944 when the goods were cleared from one factory and claimed to have been used in another factory of the same manufacturer.

Analysis: The order treated the notification as extending to goods manufactured in one factory and intended for use in the same factory or in any other factory of the same manufacturer. The benefit was, however, to be granted only if the proper officer was satisfied, on documentary evidence, that the goods cleared from the petitioners' factory were finally used in the Nagda factory and that the two units were under common ownership.

Conclusion: The exemption was held to be available, subject to satisfaction by the Assistant Collector on documentary proof of final use and common ownership.

Ratio Decidendi: An exemption for goods intended for use in another factory of the same manufacturer applies where the prescribed authority is satisfied, on documentary evidence, that the goods were so used and that the ownership requirement is met.

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