UNION OF INDIA Vs. ALEMBIC GLASS INDUSTRIES LIMITED

JUDGEMENT

(1.) These appeals, by special leave, are directed against the final judgment and order dated 23rd January 2002 delivered by the High Court of Gujarat at Ahmedabad in Special Civil Application No. 2528 of 1984. By the impugned judgment, the High Court has quashed orders dated 11th May, 1984 and 14th May, 1984 whereby the Assistant Collector had cancelled the approved price list and the revised ground plan respectively as also the consequential show cause notices issued to the Respondent-Assessee. While deciding the appeals in favour of the Assessee, the High Court has placed reliance on the decision of this Court in Union of India and Ors. v. J.G. Glass Industries Ltd. and Ors., 1998 2 SCC 32

(2.) The Assessee carries on the business of manufacturing glassware as also the process of colour printing and decoration of the glassware so manufactured. It appears that based on trade notice No. MP/24/80 dated 8th February 1980, which in turn was based on tariff advice No. 2/80 dated 4th January 1980, the Assessee pleaded that the activity of printing and decorating glassware, already manufactured, in a separate factory did not amount to "manufacture" and, therefore, the value in relation to the said process would not be includible for the purpose of levy of Excise duty. It was argued that unless the said process brings into existence a different commercial product, it cannot be said to be a manufacturing process. It was also asserted that the printing unit was separate from the main unit manufacturing the glassware. A revised ground plan was placed before the competent authority on 18th May, 1983. On 1st June, 1983, the Assessee also obtained a separate licence under the Factories Act, 1948 for the decorating unit. On 2nd June 1983, the revised ground plan was approved by the competent authority and on 7th July, 1983, the fresh price list was provisionally approved with effect from 3rd June, 1983. The competent authority, after conducting enquiry finally approved the fresh price list on 7th October, 1983.

(3.) On 11th May, 1984, the same authority who had approved the price list and the revised ground plan cancelled the approval of the price list. On 14th May, 1984, the approval of the revised ground plan was also cancelled.