2000 (5) TMI 730

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....ise Act. 2. Brief facts of the case are that the appellants are engaged in the manufacture of railway goods wagons and they were also clearing waste, parings and scrap arising in the course of manufacture of railway goods wagons by availing the benefit of Notification No. 89/95-C.E., dated 18-5-1995. Notification No. 89/95-C.E., dated 18-5-1995 grants exemption from payment of excise duty on waste, parings and scrap arising in course of manufacture of exempted goods falling within the schedule to the Central Excise Tariff provided that such waste, parings and scrap are cleared from the factory in which any other excisable goods other than exempted goods are not manufactured. 3. The appellants in their factory also manufactur....

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....not be said that while the term "goods" falling under the main part of the notification, are "goods" during the manufacture of which waste, parings and scrap arise, the reference to other excisable goods in the proviso to the notification would cover all excisable goods irrespective of whether or not waste, parings and scrap could arise during their manufacture. Such an interpretation would obviously be against the very canons of statutory construction. It is clear that if a literal interpretation of the proviso with the main clause leads to an absurd result, the meaning will have to be arrived at to agree with the intention of the notification. He, further, contended that proviso has necessarily to confine itself within the scope of main s....

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....pellants filed the declaration claiming exemption, therefore, no mis-declaration or suppression can be alleged on the part of the appellants for invoking provisions of Section 11AC. He, therefore, submits that the appeal be allowed. 7. Ld. D.R., appearing on behalf of the revenue, submits that the exemption is applicable to the waste and scrap arising in the course of manufacture of exempted goods provided that no other excisable goods were manufactured in the same factory. He submits that apart from manufacture of railway goods wagon, which are exempted; the appellants were also manufacturing oxygen/nitrogen and cotton yarn in the same factory. As regards definition of factory, he relied upon the decision of the Hon'ble Delhi High ....

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....other than where the railway goods wagons were manufactured. Section 2(e) of the Central Act provides as under : "(e) "factory" means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on" 12  This definition of factory is interpretted by Hon'ble Delhi High Court in the case of D.C.M. v. Jt. Secy., Govt. of India (supra) and Hon'ble Delhi High Court held that the expression "factory" is defined in Section 2(e) to mean any premises including the precints thereof wherein or in any part of which excisable go....