Mine-premises workshop exemption extends to mobile pump truck used to manufacture explosives for use in the mine.

Explosives manufactured in a mobile pump truck located within mine premises and used in the mine were treated as goods manufactured in a workshop situated within the precincts of mines. The two exemption notifications were read as having the same substance and effect, covering goods manufactured in workshops within mine precincts for use in those mines. Applying the earlier interpretation of the same exemption, the mobile truck used for mixing and storing ingredients inside the mine area fell within the expression "workshop". The exemption was therefore available, and denial of the benefit was unsustainable.

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Issues: Whether explosives manufactured in a mobile pump truck within the mining premises and used in the mine were exempt from duty under the relevant exemption notification.

Analysis: The two notifications were treated as conveying the same substance and effect, namely exemption for goods manufactured in workshops situated within the precincts of mines and intended for use in such mines. The earlier decision on the same exemption was applied, and the mobile pump truck used for mixing and storing ingredients inside the mine area was held to fall within the expression "workshop" for the purpose of the notification.

Conclusion: The exemption was available and the denial of benefit was unsustainable.

Final Conclusion: The assessee's appeal succeeded and the Revenue's appeal failed, resulting in grant of exemption and consequential relief.

Ratio Decidendi: A mobile van or pump truck situated within mine premises and used for manufacturing explosives for use in the mine can be treated as a workshop situated within the precincts of mines for the purpose of the exemption notification.

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