H M M LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner No. 1 which is a company incorporated under the Indian Companies Act carries on business in the manufacture of malted milk food. The said item falls in 1-B of the First Schedule to the Central Excise Act (hereinafter referred to as the said Act). The products of the petitioner Co. includes Horlicks, Boost etc. The said petitioner is said to have factories at several places including one at Bangalore. Ad valorem dut payable in the said products was enhanced from 10% basic excise duty besides 5%. Special Excise duty to 15% of the value of goods from 1-3-1979. The said enhancement was caused by Finance Act 1979 which came into force from 1st March, 1979. On 28th February, 1979 before the commencement of operation of the Finance Act, 1979, opening stocks of goods manufactured by the petitioner company was declared to be as under : <FRM>JUDGEMENT_320_LAWS(DLH)9_2002_1.html</FRM>

(2.) According to the petitioner, as the said pre-budget stock was manufactured prior to 1-3-1979, it was not liable to pay enhanced duty in terms of the Finance Act, 1979.

(3.) The petitioners claim that the duty payable by it would be governed by the law as was applicable as on 28-2-1979, taking the said plea the petitioners made representations dated 11-1-1980 and 20-2-1980. Petitioner company however made payment of the excise duty as demanded under protest. The aforesaid representations of the petitioners were rejected by respondent vide order dated 21-4-1980 stating :