SWASTIKA METAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, M/s. Swastika Metal Works, is a firm carrying on business in the manufacture of copper alloys in its factory at Jagadhari in the State of Haryana. The petitioner imports for the purpose of its manufacture copper ingots from places outside India It also purchases copper inside India. It keeps the copper thus purchased and imported in stock and utilises it from time to time for the manufacture of copper alloys. On 20.8.1966, it is common ground, the petitioner held 33705 Kgs. of copper in the form of ingots. The question is regarding the excise duty to be paid by the petitioner at the stage of the manufacture and clearance of the copper alloys in the course of its business.

(2.) On 28.2-1966 the Central Governmentssued a notification under Rule S. (1) of the Central Excise Rules. By this notification the Central Government exempted sheets and circles of copper and copper alloys produced by a manufacturer on a rolling mill and issued therefrom in untrimmed condition, from so much of the duty of excise leviable thereon as is in excess of (a) Rs. 425 per metric tonne if made from metal in a crude form which has already paid duty under sub-item (1) at the rate of Rs. 1.000.00 per metric tonne, or from old scrap of copper and copper and copper alloys, or from scrap obtained from virgin metal where the appropriate amount of duty had already been paid on such metal; and (b) Rs. 1,350.00 per metric tonne if made from metal in a crude form on which duty had not been paid. There was a proviso which stated that if duty had been paid for sheets and circles made from metal in a crude form at a rate lower than Rs. 1,000.00 per metric tonne, the duly payable would be Rs. 425.00 plus the amount by which the duty paid full short of Rs. 1,000.00 per metric tonne. On 1-5-1965 there was a retrospective amendment of the above notification. It changed the figure of Rs. 425.00 in the previous notification to Rs.500.00 . There was another notification on 20-8-1965 by which the figure of Rs. l,000.00 in the earlier notification was raised to Rs. 1.500.00 per metric tonne. On 15-10-1965 a further notification was issued under Rule (1) of Central Excies Rules. By this notification an explanation was added to the notification dated 28-2-1965 as amended by the notification dated 1-5-1965. This explanation reads as follows :

(3.) As already stated, the petitioner had on 20-8-1966 a stock of 33705 Kgs. of copper in ingot form. After the issue of the above notifications the petitioner used the above stock for purposes of manufacture of brass sheets and circles during the period from 15-2-1967 to 20-3-1967. At the stage of manufacture he filled appropriate returns and statements for purposes of excise duty in form AR 1. On the basis that the copper ingots available with the assessce had suffered duty Rs. l,500.00 per metric tonne the petitioner paid the excise duty on the occasion of the manufacture and clearance @ Rs. 500.00 per metric tonne. There is no dispute that the duty @ Rs. 500.00 has been paid by the petitioner in respect of such manufacture.