GABRIAL INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Trade Notices issued to the petitioner purported to be by way of conveying a decision of the Collector Central Excise that firms or companies who have no factory of their own and who get excisable goods manufactured according to their own specification and/or under their own brand names or trade names should be required to be licensed under the Central Excise Law, are the subject matters of this writ petition.

(2.) The petitioner is a company registered and incorporated under the Companies Act. It is carrying on the business of manufacturing and selling thin walled bearings. It sells majority of its goods in the replacement market through independent wholesale dealers. The petitioner has received an order from India Motor Parts and Accessories Limited for manufacture of bearings under its trade name IMPAL on the outer cartons.

(3.) According to the petitioner, those who purchase goods in bulk and sell the same in their own brand name, cannot be treated as a manufacturers and, thus, are not liable to pay excise duty.