MANGALAM ORGANICS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has filed the present petition seeking quashing of the decision of the respondent communicated by letter dated 30.09.2014 to the effect that Notification under Sec. 11C of the Central Excise Act, 1944 (hereinafter referred to as 'the Act') cannot be issued for extending the benefit of not requiring to pay the Central Excise Duty to the units manufacturing rosin and turpentine without aid of power, except for the purpose of using electricity to pump, for lifting up water for condensation to the overhead tank, for the period from 27.05.1994 to 28.02.2006 and for a writ of mandamus for directing the respondent to issue a Notification under Sec. 11C of the Act extending the benefit of not requiring the Central Excise Duty for the units manufacturing rosin and turpentine without the aid of power, except for the purpose of using electricity to pump, for lifting up water to overhead tanks; for the period from 27.05.1994 to 28.02.2006.

(2.) As per the petitioner, there are two methods of manufacturing rosin and turpentine from Oleo Pine Resin. One method is the vacuum chemical treatment process which uses power in almost all the processes and the second method is the 'Bhatti process' which is entirely manual except for the use of power to operate the pump for lifting up water to the storage tank for the purpose of condensation.

(3.) It is contended that the number of units adopting the first method is around 10 whereas majority of the units (i.e., about 300) are using the latter method and confining the use of power only for lifting of water to overhead tanks for condensation of turpentine vapours collected as liquid turpentine in tanks.