1989 (6) TMI 222

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....pose of availing of the benefit of this Notification was that the value of the plants and machinery installed in the appellants' Unit should not exceed Rs. 20.00 lakhs. The declaration filed by the appellants in this regard showed the value of the plants and machinery as Rs. 18,73,402.74. The appellants were manufacturing potassium chlorate and one of their items of machinery are the 24 electrolytic cells and in each of which 20 titanium metal anodes were used. These titanium metal was not consumable in nature and necessary oxidisation was required to be done at certain intervals. On enquiry by the Central Excise authorities, it was found that the value of the plant and machinery installed in the appellants Unit was more than Rs. 20.00 lakh....

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....te the power supply and that a certificate to this effect was obtained from the electrical authorities and produced before the lower authority showing the expenditure incurred and also the purpose for which it was installed. He pleaded that the scope of the plant and machinery as used in the Notification does not cover the masonry works in the nature of tanks even though the tanks are used for storage of the material. 4. We have heard the learned D.R. Shri K.M. Vadivelu. 5. We observe that in both the Notifications i.e. 77/83 and 75/85 the question that arises for consideration is as to what should be considered as plants and machinery for the purpose of arriving at the value of plants and machinery installed in an industrial unit which i....

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....terial whether they are made of bricks, concrete and cement. So long as the process tanks act as an essential part of the plant and machinery, its value will have to be included in computing the total value of the plant and machinery". It is not disputed that these tanks are used by the appellants for the purpose of storage of finished products and also for treatment of effluent during the production process. For the purpose of the notification however, we observe that the legislature has required the Rs. 20 lakhs limit to be taken in respect of plant and machinery installed (emphasis supplied) in the industrial unit. The question that is to be considered is whether it can be said that the tank which is a masonry work can be said to be ins....

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....t of the manufacturers will be precluded from enjoying the benefit of the notification. It is for this reason that the framers of the notification have used the words "plant and machinery installed" rather than saying that the total value of the Plant and machinery which should not exceed Rs. 20 lakhs. In this view of the matter, we hold that the value of the tanks cannot be included for the purpose of reckoning the limit of Rs. 20 lakhs as set out in the notification. In regard to the transformer, we observe that the Collector did not accept the request of the appellants to find out whether it was used as part of the plant and machinery installed in relation to the manufacture or it was only for drawing electric supply from the main transm....