Jawahar Mills Ltd. vs Commissioner Of Central Excise on 13 April, 1999
It is only buildings or structures required for the factory - this would conform to the definition "used by the manufacture in a factory" occurring in rule 57Q. It would be evident that a building which houses and protects from the elements the machinery that a manufacturer uses, as also the raw material and components, that are employed is necessary for its activities. To hold otherwise is to assume that the manufacture may conduct his operation in the open air and his machinery and raw material in his factory would be at the mercy of the elements and any human intruders. The principle accepted by Jawahar Mills vs. CCE 1999 (108) ELT 47 that the goods which are required to be used by a manufacturer for making a finished product would be capital goods although they may not directly produce or process the finished product or bring about any change in any substance to the finished product would apply with equal force to the elements of factory shed etc. The one is as necessary as the other for the manufacture of finished goods.