ELECTRONICS LIMITED Vs. UNION OF INDIA AND OTHERS

JUDGEMENT

(1.) This petition under Articles 226 and 227 of the Constitution of India seeks a writ of certiorari to quash the notice of demand dated August 25, 1967 issued by the Inspector, Central Excise, the orders of the Assistant Collector, Central Excise, dated May 6, 1968 and June 19, 1968 confirming the notice of demand and rejecting the claim of the petitioner for refund of excise duty, the orders of the Collector of Central Excise dated July 9, 1968 and October 3, 1968 rejecting the appeals of the petitioner and the order of the Joint Secretary to the Government of India, Ministry of Finance (Department of Revenue & Insurance), New Delhi dated April 2/6, 1970 rejecting the revision petition of the petitioner. The dispute has arisen on these facts.

(2.) The petitioner is the manufacturer of Air -conditioners and holds a license issued under Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) and the Central Excise Rules, 1944 (hereinafter referred to as the Rules) for the manufacture of air -conditioners and parts thereof. The manufacture is carried on at the petitioner's factory situated at 26, N.I.T., Faridabad in the State of Haryana. For the manufacture of Air -conditioners, the petitioner purchase, amongst others, the parts from other indigenous manufacturers, namely, compressors, thermostats and starting relays. Under item No. 29 -A of the First Schedule to the Act, Air -conditioners and parts thereof are subject to the levy of excise duty and during the relevant financial years 1966 -67 and 1967 -68 the rates of excise duty livable thereon was as under : -

(3.) Sub -rule (1) of Rule 8 of the Rules provides that the Central Government my, from time to time, by notification in the Official Gazette, exempt subject to such conditions as may be specified in the notification, any excisable goods from the whole or any part of duty livable on such goods. This is the power to authorise exemption from excise duty. In exercise of the powers conferred by sub -rule (1) of Rule 8 of the Rules, the Central Government issued a notification dated June 2, 1962 in these words : -