UNION OF INDIA Vs. KIRLOSKAR OIL ENGINEES LIMITED

JUDGEMENT

(1.) Two questions which arise for consideration in this appeal are whether aluminium strips, which is an intermediate product during the course of the manufacture by the respondent, is a marketable commodity or not and secondly, whether the principle of unjust enrichment would apply to the present case.

(2.) The question as to whether the intermediate product is a marketable commodity or not, is essentially a question of fact. The judgment, under appeal, arises from a writ petition having been filed by the respondents wherein, the main contention raised was with regard to the vires of Rule 9 of the Central Excise Rules. That point was not gone into, the vires being ultimately upheld by this Court and the writ petition was allowed with the High Court coming to the conclusion that the intermediate product was not a marketable commodity.

(3.) In our opinion, this is essentially a question of fact, which should first be decided by the Excise Authorities before whom parties would be in a position to lead evidence. It is contended by Mr. Hidayatullah that the type of metal strip which comes into being at the intermediate stage is certainly not a commodity known to the market, not available in the market and therefore cannot be regarded as goods and hence not taxable. As we have already observed, this contention does not seem to have been considered, perhaps not raised at an earlier stage and it would therefore be appropriate that the Adjudicating Authority or the Collector (Appeals) decides this issue.