HINDUSTAN MILKFOOD MANUFACTURERS LIMITED Vs. UNION OF INDIA (UOI) THROUGH THE JOINT SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE AND INSURANCE AND ORS.

JUDGEMENT

(1.) The petitioner is engaged in the manufacture and sale of milkfood and dairy products. The said products are packed in bottles at several packing stations in India. The goods are marked under the brand name of 'Horlicks'.

(2.) According to the petitioner, on the sales which it makes, it gives discount to its dealers in two ways. Either it gives a dealer 13 bottles of 'Horlicks' and charges for 12 bottles or it gives cash discount. The rate of cash discount is varied between 1.75 to 1.5%.

(3.) By the Finance Act of 1969, 10% ad valorem duty is chargeable on earnings. The petitioner was required to submit price list to the Excise Authorities. The controversy in this writ petition is with regard to the non -approval of the price list inter alias with regard to the aforesaid two items and the other discounts claimed by the petitioner. The price lists were not approved by various orders passed by the Assistant Collector, Central Excise. The petitioner received order dated 28th April 1971 inter alias to the effect that the unit of sale shown as 13 bottles was not acceptable for the purposes of assessment under Sec. 4 of the Central Excises and Salt Act, 1944. It was further stated that discount of 1.5% only would be allowed and not 1.75. - With regard to the various price lists for the period 1st March, 1970 to 31st December, 1970 the petitioner received a notice dated 14th June 1971 reiterating what had been stated in the earlier order dated 28th April, 1971. Similarly, with regard to the period from 1st January 1971 to 21st November 1971, an order dated 14/15th June 1971 was received. Thereafter, the petitioner received a show -cause notice dated July 7, 1971. In the said show -cause notice the respondent claimed a sum of Rs. 85,150.84p stated to be the amount of short levy and/or non -levy. In the present writ petition the petitioner is inter alias challenging the aforesaid orders and notice.