TaxTMI 
TaxTMI 
1994 (10) TMI 60
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....entral excise duty and under gate passes, for captive consumption to their Chromic Acid Section situated adjoining to their manufacturing premises, for the manufacture of Chromic Acid flakes. The officers further found that those flakes (falling under T.I. 68) were manufactured with the aid of power and were removed under delivery challans of the appellants without payment of duty. The Officers detained 98 drums containing 4,900 kg. of Chromic Acid flakes lying in the Chromic Acid section for making further enquiry into the matter. On a subsequent visit on February 2, 1983, the Officers seized 126 drums of Chromic Acid flakes (which included the 98 drums detained earlier) in fully manufactured condition weighing 63,000 kgs. and valued at Rs. 1,89,000/- on the reasonable belief that the goods were liable to confiscation as the appellants were not entitled to exemption from duty under Notification No. 46/81, dated March 1, 1981. The goods were provisionally released to the appellants on their executing requisite bonds. 3.In due course a notice was issued to the appellants on July, 14, 1983 charging them with contravention of Rule 173F read with Rule 9(1), Rule 173B, Rule 173C, Rul....
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....l be profitable at this stage to refer to Notifiaction No. 46/81, dated March 1, 1981, which reads thus : "In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 85/79-Central Excises, dated the 1st March, 1979, the Central Government hereby exempts all goods, falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), other than goods manufactured in a factory, from the whole of the duty of excise leviable thereon. Explanation : In this notification, the expression "factory" has the meaning assigned to it in clause (m) of Section 2 of the Factories Act, 1948 (63 of 1948). This notification shall come into force with effect from the 1st day of April, 1981." and Section 2(m) of the Factories Act, 1948 which, so far as it is relevant for our present purposes, reads as under : "factory" means any premises including the precincts"(m) thereof - whereon ten or more workers are working, or were working on(i) any day of the preceding twelve months, and in any part....
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....including Chromic Acid Section formed the division of Grauer & Weil (India) Ltd., Bombay, in the name of M/s. Growel Chromates, on merger. On the other hand, while applying for L 4 licenses for manufacture of "Sodium & Potassium Dichromate" falling under T.I. 14 AA on 2-12-1981 and for "Yellow Sodium Sulphate" falling under T.I. 68 on 18-1-1982, in the ground plans produced therewith, the assessee has safely avoided to show their premises demarcated as "Chromic Acid" Section, though the same premises is situated in the same plot bearing No. 407 The facts discussed as above clearly bring out that the assessee has made a wrongful attempt to get considered "Chromic Acid" section as a separate premises/entitly entitled for exemption under Notification No. 46 dated 1-3-1981 as amended, as not governed by Section 2(m) of the Factories Act, 1948. It has also not been disputed by the assessee, that their "Chromic Acid" Section is situated in the same plot No. 407, where their another section for manufacture of "Sodium Bichromate" is situated. It is also an admitted fact that there is common connection for supply of water and electricity to both the sections are borne by the assessee ....
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....or were working on any day of the preceding twelve months, and in any part thereof a manufacturing process is being carried on with the aid of power it would be a factory. Ordinary, meaning of the word `premises' is a piece of land including its buildings or a building together with its grounds or appurtenances and precincts mean the areas surrounding a place. The words "any premises including the precincts thereof" under Section 2(m) are therefore wide enough to include all buildings with its surroundings which form part of one unit. If therefore in such an area ten or more workers are working and in any part thereof manufacturing process is being carried on with the aid of power it would be a factory within the meaning of Section 2(m). 12.Since both the Collector and the Tribunal have recorded their respective findings as quoted above, taking into consideration all relevant facts and relevant factors in the light of the above definition of factory, no exception can be taken to the same. The first contention of the appellants therefore fails. 13.The next contention that was raised on their behalf - and did not find favour with the authorities below - is that even it is accep....
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....cts and circumstances there was any fraud or collusion or wilful mis-statement or suppression or contravention of any provision of any Act, is a question of fact depending upon the facts and circumstances of a particular case." (emphasis supplied) 14.As has been observed in the above-quoted passage the question as to whether in a given case the requirements for invoking the proviso are fulfilled or not is one of fact. It has therefore to be ascertained whether in the set of facts and circumstances of the instant case, the Collector and Tribunal were justified in concluding that the appellant was guilty of wilful mis-statement and suppression of facts. On perusal of the record we find that in arriving at the above conclusion the Collector and the Tribunal relied upon the following facts and circumstances :- the reference to the declaration dated April 15, 1981 by the(i) appellants in their letter dated September 19, 1981 was incorrect and misleading inasmuch as the said declaration related to M/s. Growel Chromates Pvt. Ltd. and was filed for availing exemption under Notification No. 105/80, dated June 19, 1980, which pertained to factories wherein the total investment on plant....