Reasonable construction of shift-based excise notifications prevents labour law rest breaks from being counted as extra working time.

A taxing notification defining a "shift" must be construed reasonably, and a mandatory rest interval under labour law cannot be treated as extra working time to inflate the number of shifts. Applying that interpretation, the Bombay HC held that the half-hour break in each of the factory's two working shifts could not be counted as a third shift. The department's calculation of working hours was therefore unsustainable, and the excise demands founded on the supposed third-shift theory could not stand.

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Issues: Whether, for the purpose of the impugned excise notification, the factory's two working shifts were to be treated as a third shift merely because each shift included the half-hour rest interval required by labour law, so as to sustain the demand notices.

Analysis: The notification defined a shift as eight hours' duration, irrespective of whether the machine worked for the full period. The Court construed that expression reasonably and in the light of the mandatory rest interval under the Factories Act. The half-hour interval could not be counted as extra working time so as to convert two shifts into three. Since the department's view proceeded on an unreasonable calculation of working hours, the demand notices founded on a supposed third shift could not stand.

Conclusion: The issue was decided in favour of the assessee. The factory was held not to have worked a third shift within the meaning of the notification, and the impugned demands were unsustainable.

Final Conclusion: The writ petition succeeded and the excise demands, together with the appellate and revisional orders based on the third-shift theory, were quashed.

Ratio Decidendi: A taxing notification defining "shift" must be construed reasonably, and a mandatory rest interval required by labour law cannot be treated as additional working time so as to enlarge the number of shifts and attract a higher duty levy.

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