AMAR DYE CHEM LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal by certificate is against the Judgment of the High Court of Bombay, which allowed the appellant's petition in part and rejected their prayer for refund of the balance of Excise Duty of Rs. 90,803.78p. The first appellant is a manufacturer, among other things, of dyes derived from coal tar and coal-tar derivatives. The second appellant is its Managing Agent.

(2.) Prior to 1st. March 1961 "dyes derived from coal tar and coal tar derivatives used in any dyeing process, all sorts" were not subject to Central Excise. By the Finance Bill of 1961 the above articles were inserted in the 1st. Schedule to the Central Excises and Salt Act as item 14D. The Provisional Collection of Taxes Act, 1931 was made applicable to this levy and all dyes derived from coal tar and coal tar derivatives manufactured after the mid-night of 28th February 1961 became liable to the new ad valorem Excise Duty of 15 per cent.

(3.) The dispute between the Central Excise officers and the appellants related to a quantity of 47068-50 kg. of dyes derived from coal tar and coal tar derivatives. This quantity consisted of 8 different items. The departmental officers having refused to treat the whole of this quantity as manufactured before the mid-night of 28th February, the appellants filed a petition before the Bombay High Court out of which this appeal arises. The High Court allowed the petitioners' claim in respect of a quantity of 15,109.6 kg. and refused relief in respect of the balance. Though at a certain stage the parties relied upon what was called a Trade Notice bearing No. 21 (MP) General, 1961 dated 6th March 1961 issued by the Collector of Central Excise, which purported to lay down that good will not be considered as fully manufactured "unless at mid-night of 28th February, 1961 they were ready for delivery, the argument before the High Court as well as this Court centered around the point whether the process of manufacture had been completed before the mid-night of 28th February.