UNION OF INDIA Vs. VIKRANT TYRES LTD

JUDGEMENT

(1.) The facts, which give rise to this appeal, are required to be briefly stated to appreciate the grievance of the appellants.

(2.) The first respondent-company manufactures tyres, tubes and flaps at its factory in Mysore. The manufacture of tyres, tubes and flaps are liable to excise duty under Tariff item No. 16 of the First Schedule to Central Excise and Salt Act, 1944. The Government of India, in exercise of the power under sub-rule (1) of Rule 8 of the Central Excise Rules, published Notification No. 88 of 1984 giving exemption from payment of so much of the duty of excise in excess of 80% leviable on tyres. The benefit of the Notification was available, provided the tyres were manufactured in a factory, which is an industrial undertaking, licenced under Sec. 11 or Sec. 13 of the Industries (Development and Regulation) Act, 1951, and from which the clearance of tyres was effected during April 1, 1976 and March 31, 1984. The first respondent-company had effected the first clearance on Oct. 23, 1979.

(3.) The company applied before the Director General of Technical Development in April 1984 for issue of certificate as contemplated under the Notification. The company set out the capital investment on plant and machinery for the manufacture of tyres between Oct. 24, 1979 and March 31, 1984. The company in support of the claim relied upon the certificate issued by the statutory Auditors indicating that a quantum of investment made by the Company between the relevant period was to the tune of Rs. 1922.06 Lakhs. In pursuance of the application, the Director General of Technical Development issued the certificate that the company was eligible to obtain the benefit of exemption of duties on the clearance of tyres from its factory in Mysore.