UNION OF INDIA Vs. I T C LIMITED

JUDGEMENT

(1.) As the questions that arise for determination in these appeals between the same parties are interconnected, we propose to dispose of them by a common judgment.

(2.) M/s I. T. C. Ltd., a public limited company, incorporated under the Companies Act, which is respondent-1 before us, petitioner No. 1 in W.P. Nos. 11792 of 1978 and 2413 of 1978 out of which these appeals arise and will be hereafter referred to as the respondent. The respondent is inter alia engaged in the manufacture and sale of cigarettes and tobacco products in its five factories situated in different parts of the country, one of which is situated in the City of Bangalore, with which factory products only we are concerned in these appeals. As manufacturer of cigarettes and tobacco products, the respondent is exigible to excise duty under the Central Excises and Salt Act, 1944 (Central Act No. 1 of 1944) and the Rules made thereunder ('the Act'and 'the Rules').

(3.) For the periods from (1) 17-2-1972 to 31-1-1972, (2) 16-2-1972 to 16-3-1972, (3) 1-9-1970 to 28-5-1971, (4) 29-5-1971 to 15-2-1972 and (5) 1-2-1973 to 22-2-1973, the respondent had paid excise duty on the goods manufactured at its Bangalore factory under sections 3 and 4 of the Act as interpreted by this Court in AMCO Batteries (P) Ltd. v. Assistant Collector of Central Excise, Bangalore - (A.I.R. 1963 Mysore 216). But the Supreme Court in its decision rendered on 1-12-1982 in A. K. Roy v. Voltas Limited AIR1973 SC 225 , 1973 ECR60 (NULL ), 1977 (1 )ELT177 (SC ), (1973 )3 SCC503 , [1973 ]2 SCR1089 disagreeing with the enunciation made by this Court in AMCO Batteries' case ruled that excise duty under the Act was leviable on the wholesale cash price at the factory gates or from principal to principal basis and not on the basis of secondary wholesales.