ASSOCIATED ELECTRONIC AND ELECTRICAL INDUSTRIES PVT LTD Vs. ASSISTANT COLLECTOR OF CENTRAL EXCISE BANGALORE

JUDGEMENT

(1.) M/s. Associated Electronic and Electrical Industries (Bangalore) Private Limited, a company incorporated under the Companies Act of 1956, which is the petitioner, is inter alia engaged in the manufacture of a sophisticated equipment called "intercommunication telephone equipment." The equipment is used for internal communications or as an internal telephone in modern offices, establishments, hotels and restaurants both private and Government. In common parlance or in colloquial language, the equipment is called as "intercom".

(2.) On 26th December, 1973, the petitioner filed the classification list in form No. 1 prescribed by the Central Excise Rules of 1944 ("the Rules"), framed under the Central Excises and Salt Act of 1944 (Central Act 1 of 1944) ("the Act"), in which it claimed that the equipment manufactured, was a "telephone" and was not eligible to excise duty under item No. 33D of the First Schedule to the Act ("item No. 33D") in particular and the Act in general. On examination of the same and apparently rejecting the same, the Assistant Collector of Central Excise, Bangalore-I Division, Bangalore ("the Assistant Collector") by his Notice No. C.V./33D/17/3/71 dated 22nd April, 1974 (exhibit B), called upon the petitioner to show cause as to why the same should not be charged to duty under item No. 33D as an "intercom machine". In response to the said notice, the petitioner filed its reply on 8th May, 1974, before the Assistant Collector reiterating its earlier stand. On an examination of the show cause notice, the reply and the records, the Assistant Collector by his order dated 7th August, 1974 (Annexure D), confirmed his show cause notice and directed the petitioner to clear the manufactured equipments on payment of duty thereon as stipulated in item No. 33D and the Act. Against the said order of the Assistant Collector, the petitioner filed an appeal in Appeal No. 51 of 1978 before the Appellate Collector of Customs and Central Excise, Madras ("the Appellate Collector") who by his order dated 11th January, 1978 (Annexure G), dismissed the same. Against the said orders of the Appellate Collector and the Assistant Collector, the petitioner filed a revision before Government of India, which by its order dated 30th June, 1980 (Annexure J), dismissed the same. In this petition under article 226 of the Constitution, the petitioner has challenged the aforesaid orders.

(3.) As before the authorities, the petitioner has asserted that the equipment manufactured by it was a "telephone" and was not exigible to duty under the Act. In support of that claim, the petitioner has also relied on a decision rendered by the Central Board of Excise and Customs, New Delhi ("the Board") on 25th January, 1980 (Annexure K), in an appeal filed by the India Telephone Industries, Bangalore ("ITI").