This is a common situation of overlapping jurisdiction of two separate labor laws. Once the Factories Act, 1948 becomes applicable to a premise including the precincts thereof, automatically any other establishment specific law like the Shops and Establishments Act would not become applicable. I think there must be some communication gap and the Inspector under the TNS&E Act might not have been properly intimated the fact of the entire premises including the Show Room Area got already approved under the Factories Act as a factory and there may be the failure on your part to maintain all the registers and notices in respect of those employees engaged for sales activities under any Act.
In view of the above facts, your single premises covering both sales and service of the products of your merchandise will not come under the TNS&E Act, 1947.
Better inform the concerned Inspector under the TNS&E Act the fact of the entire premises already covered under the Factories Act, 1948.
28th September 2018 From India, Salem
30th September 2018 From India, New Delhi