MYSORE CEMENTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition presented by M/s Mysore Cements Ltd., the following question of law arises for consideration :

(2.) Facts of the case, in brief, are as follow : Section 4 of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) was amended in the year 1973 (See Act 22/1973-Ed.) The relevant part of Section 4 of the Act after its amendment, reads:

(3.) After this section came into force, on the ground that the gunny bags in which the portland cement manufactured by the assessee was being packed, was a durable packing material and was also returnable by the purchaser to the petitioner o excise duty was paid by the petitioner during the period commencing from 1-10-1975 to 27-11-1975. However, when the department demanded the payment of excise duty even on the packing material the petitioner paid the excise duty in respect of the packing charges also under protest from 28-11-1975 to 8-1-1976. On and after 9-1-1976 by the issue of a Notification by the Central Government under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, a clear exemption was granted to the cost of packing in respect of grey portland cement. The said notification reads :