ALEMBIC GLASS INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) M/s Alembic Glass Industries Ltd., Baroda, a public limited company, incorporated under the Companies Act, which is the petitioner before us, is engaged in the manufacture and sale of 'glass and glassware' at its two factories, one situated at Baroda and the other situated at Whitefield on the outskirts of the City of Bangalore. We are concerned in this case with the Whitefield factory.

(2.) 'Glass and Glassware' manufactured by the petitioner are dutiable to excise duty under the Central Excise and Salt Act, 1944 (Central Act No. 1 of 1944) ('the Act'). In conformity with the Act and the Rules made under the Act, the petitioner filed four price-lists before the Superintendent of Central Excise, Bangalore, for the period commencing from 1-10-1975 (Exhibit-A1), inter alia, claiming that 'cartons' or 'packing materials' supplied by its buyers and their cost thereto was not includible in the assessable value of excisable goods manufactured and supplied to its wholesale purchasers. On an examination of the said price-lists, the Superintendent provisionally accepted the same and allowed the clearance of good without payment of excise duty on the packing material supplied by the buyers.

(3.) But, the Assistant Collector of Central Excise, IDO No. 23, Bangalore-1, ('Assistant Collector') on a further examination has issued show cause notice No. C. No. V. 23A(17)18/75 (Exhibit-B) to the petitioner proposing to withdraw or revoke the provisional approval accorded by the Superintendent and subject the cost of such packing material in the assessable value and consequent payment of excise duty under the Act for the reasons stated therein. In this petition under Article 226 of the Constitution, the petitioners has challenged the constitutional validity of Section 4(4)(d)(i) of the Act and the aforesaid show cause notice issued by the Assistant Collector.