UNION OF INDIA Vs. NANDI PRINTERS PRIVATE LIMITED

JUDGEMENT

(1.) The respondent herein at his printing press manufactures playing cards as well as printed cartons. Playing cards fall under Tarriff Item 56 of the Tariff Act, while printed cartons fall under Tarriff Item 68. The question for consideration in this appeal is whether for the purpose of levy of excise duty on the manufacture of printed cards the respondent can be regarded as a small scale industry or not. The answer to that question depends on whether the value of the printed cartons can be taken into consideration even though by Notification No. 89/79 levy of excise duty on manufacture of printed cartons was exempted.

(2.) The excise authorities came to the conclusion that taking into consideration the aggregate value of the goods cleared. i.e., playing cards plus printed cartons the respondent could not be regarded as a small scale industry. This was so stated even in the show cause notice which was issued to the respondent and it was clearly mentioned therein that in the preceding financial year, that is to say, 1979-80, the turnover of the respondent had exceeded Rs. 20 lakhs.

(3.) The decision of the excise authorities was challenged by way of a writ petition filed by the respondent. The single Judge as well as the Division Bench were of the opinion that the respondent was entitled to the benefit of Notification No. 80/80 (89/79) dated 19-6-1980 and in respect of the playing cards no excise duty would be payable because the aggregate value of the clearances of the playing cards was less than Rs. 20 lakhs as, in the opinion of the High Court, the clearances in respect of printed cartons could not be taken into consideration. Hence, this appeal.