Watchmen excluded from worker count for central excise exemption eligibility under the manufacturing-process test.

Watchmen employed in a workshop are not treated as workmen for computing the worker threshold under Notification No. 54/75-C.E. because they do not participate in the manufacturing process and their duties are too remote to be regarded as incidental to or connected with it. Their names therefore cannot be included when determining whether the unit crosses the permissible limit for exemption eligibility. The exclusion of watchmen was directed to be applied for fresh consideration of eligibility under the notification.

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Issues: Whether watchmen employed in the workshop could be treated as workmen for computing the number of workers for eligibility under Notification No. 54/75-C.E. dated 1-3-1975.

Analysis: The Tribunal accepted the view that watchmen do not participate in the manufacturing process and that their duties are too remote to be regarded as incidental to, or connected with, that process. In the absence of any contrary authority on the point, the names of such watchmen could not be included while determining whether the unit crossed the permissible worker limit for the exemption.

Conclusion: Watchmen cannot be counted as workmen for this purpose, and the exclusion of their names was directed for fresh consideration of eligibility under the notification.

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