Factory definition under an exemption notification can include storage premises linked to manufacture, granting concessional excise duty.

An exemption notification defining "factory" to include any premises where goods are manufactured or stored extended to a milk chilling centre used to store milk before transfer to the manufacturing unit. Because the notification's definition was wider than the general statutory definition and specifically covered storage connected with manufacture, the separate chilling centre was treated as part of the manufacturing arrangement. The refrigeration compressor therefore qualified for concessional excise duty, and the Revenue's challenge failed.

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Issues: Whether, for the purpose of Notification No. 93/76-C.E. dated 16-3-1976, a milk chilling centre used for storing milk before transfer to the manufacturing factory could be treated as a "factory" so as to qualify for concessional excise duty on the refrigeration compressor.

Analysis: The notification contained its own explanation defining "factory" to mean any premises, including the precincts thereof, where any goods are manufactured or are stored, excluding office premises. This definition was wider than the definition in Section 2(e) of the Central Excises and Salt Act, 1944, because it referred to "goods" and specifically included storage. The relevant scheme of the notification showed that the storage need not be confined to manufactured goods and could extend to premises where inputs are stored, provided the storage is in relation to manufacture. The chilling centre stored milk for use in the manufacture of milk products and was therefore part of the manufacturing arrangement.

Conclusion: The milk chilling centre was covered by the expression "factory" in the notification, and the compressor was entitled to concessional duty. The appeal by the Revenue failed.

Final Conclusion: The order granting the exemption benefit was upheld because the notification's definition of factory included storage premises connected with manufacture.

Ratio Decidendi: Where an exemption notification defines "factory" to include premises where goods are stored, storage premises used in relation to manufacture may qualify even if they are separate from the actual manufacturing site.

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