ROLLATAINERS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition under Article 226 of the Constitution of India there is a prayer for setting aside/quashing a show cause notice dated 24.9.79. (annexure K) issued by Additional Secretary to the Government of India, Ministry of Finance, Department of Revenue and the letter dated 12.11.80 (Annexure P) issued by the office of Superintendent, Central Excise, Range III, Faridabad.

(2.) Petitioner manufactured printed cartons. They had been paying duty on these under Tariff item 68 of CET since 1975. They submitted a revised classification list no. 29 of 78 on 15.5.78 with representation that printed carton should be exempt from duty under item 68 as these were products of printing industry and thus eligible for exemption. In support they relied on Govt. of India order in revision 2057/77 passed in the case Allibhoy Shrafolly Co. The Asstt. Collector held that benefit of exemption claim was not admissible. Petitioner appealed and App. Collector held that petitioner was eligible. Thus by impugned show cause notice u/S. 36 (2) of CE & Salt Act, 1945 Govt. of India proposed to set aside impugned order in appeal and to pass an order that the printed cartons manufactured by the petitioner could not be held as products of the printing industry eligible for exemption but products of packaging industry. Therefore, by means of the impugned notice, the Govt. called upon the petitioner to show cause within 30 days why the impugned order in appeal be not set aside. It is at this stage that present W.P. was filed by the petitioner for quashing the show cause notice dated 24.9.79 and the letter dated 12.11.80 by which the petitioner was advised to clear the goods on payment of duty pending approvalf the classification list by the Assistant Collector, Faridabad.

(3.) Unfortunately, counter affidavit in this matter does not seem to have been filed. However, detailed arguments have been addressed on both sides. The short question which requires determination in this petition is whether design printed boards/cartons should be classifiable under item No. 17 (2) of the Central Excise Tariff or under item No. 68. If it is held that they are classifiable under item No. 17 (2) they will be immune from the levy of Excise Duty and in case they are held to be products of packaging and not of printing industry then they will have to be classified under item No. 68 so as to be available for levy of Excise Duty.