1991 (6) TMI 141

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....ral Excise Tariff. The workshop employing about 200 workers was registered under the Factories Act. The items manufactured in the workshop were used for the repair of the vessels and tugs berthed in the dry-dock situated adjacent to the workshop. The Assistant Collector of Central Excise by his order dated 5-12-1983 held the respondents were not eligible for exemption under Notification No. 118/75 since the excisable goods manufactured by them were being used in the repair of vessels brought to the dry docks which was not in the factory or workshop where they were manufactured. Being aggrieved by the order passed by the Assistant Collector the respondents filed an appeal before the Collector (Appeals), who while allowing the appeal held tha....

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....8/75 exempted goods falling under Item 68 of the First Schedule to the Central Excises and Salt Act, 1944 manufactured in a factory and intended for use in the factory in which they were manufactured, or in any other factory of the same manufacturer, from the whole of the duty of excise leviable thereon. Hence, the only point to be examined in this case is whether the goods manufactured in the Port Trusts own workshop which was licensed as a factory on being, used for the repair of various types of vessels in the dry-docks could be deemed to have been used in the factory. 5. It has been contended on behalf of the appellant Collector that even though the dry-dock was adjacent to the workshop/factory where the goods were being manufactured....

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....d." 6. It is also seen that in the case of Indian Iron & Steel Co. Ltd. v. Collector of Central Excise reported in 1990 (46) E.L.T. 409, the Tribunal had occasion to interpret the exemption Notification No. 281/86 under the new Tariff which corresponds to the exemption which was available in terms of Notification No. 118/75 under the erstwhile Central Excise Tariff. It was held that so long as the excisable goods manufactured in a workshop within a factory are intended for use in that factory for the purpose of repair and maintenance of machinery, the exemption cannot be denied on the ground that only goods manufactured in a workshop which is restricted to a tool room would be eligible for exemption. An extract from para 3 of the Tribuna....