K. Prakash Anand, Member (T)

1. As per Notification No. 118/75-C.E., dated 30.4.1975, the Central Government Exempted goods falling under Item No. 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. Where such use was in a factory of a manufacturer, different from the factory where the goods had been manufactured, the exemption was allowable subject to the proper officer being satisfied that the goods were intended for such use. The case of the department is that appellants, who are manufacturers of sugar, also produced steam, an excisable product, and utilised it in the adjacent Distillery unit without payment of duty on such steam. It is alleged that they incorrectly availed of Notification No. 118/75.

2. In the order-in-appeal against which the appellants are before us, it has been observed that factory as per the definition in Section 2(e) of Central Excises and Salt Act, 1944, is "any premises, including the precincts thereof, wherein or in any part of which exc