Power used in integral manufacturing operations defeats exemption under Notification No. 101/66 for acid slurry

Acid slurry was held ineligible for exemption under Notification No. 101/66 because power was used in preliminary and incidental operations integrally connected with manufacture. The record showed power-assisted transfer of acid, pumping, raw material handling, and temperature control within the sulphonator. Applying the principle that such connected operations form part of the manufacturing process and cannot be separated from it, the use of power attracted the notification's exclusion. The exemption was therefore denied and the Collector's order granting it was set aside on merits.

---

---

Issues: Whether acid slurry manufactured by the respondents was eligible for exemption under Notification No. 101/66 dated 17-6-1966 on the ground that no process was ordinarily carried on with the aid of power in or in relation to its manufacture.

Analysis: The manufacture of acid slurry involved preliminary operations such as charging raw materials, pumping, and temperature control within the sulphonator. The record showed use of power for transferring acid, operating pumps, and handling raw materials in the manufacturing set-up. Applying the principle that preliminary and incidental operations integrally connected with the manufacture cannot be disintegrated from the manufacturing process, the use of power in such operations attracted the exclusion contained in the exemption notification.

Conclusion: The acid slurry was not entitled to the benefit of exemption under Notification No. 101/66, and the Collector's order allowing exemption was set aside on merits.

---