KISSAN CHEMICALS Vs. UNION OF INDIA

JUDGEMENT

(1.) The present judgment will dispose of Civil Writ Petition Nos-3903/95 (M/s Kissan Chemicals v. Union of India and others), 3836/95 (PI Industries Ltd. and another v. The Union of India and others), 3939/95 (M/s Hindustan Pulverising Mills v. Central Board of Excise and Customs) and 1008/96 (M/s Markfed Agro Chemicals v. Union of India and others). The petitioners in all these petitions have challenged the issuance of Circular/Order, Annexure P-3 to the petition, issued under Section 37-B of the Central Excise and Salt Act, 1944 by the Central Board of Excise and Customs. The learned counsel have contended that common questions arise in all the cases, though in some cases the Circular has been impugned and in other cases the issuance of show cause as well as the consequent orders have been challenged. The petitions are, therefore, disposed of by this judgment.

(2.) The facts of writ petition No-3903/95 (M/s Kissan Chemicals v. Union of India and others) may be noticed.

(3.) The petitioner is a Unit of M/s Montari Industries Ltd. having its works at 41, Industrial Area, Phase-II, Chandigarh and is engaged in the formulation of pesticides. The petitioners submit that the process employed in the manufacture of formulating pesticides consists of buying of highly concentrated pesticides either from the market or from the manufacturers directly. The highly concentrated pesticides are cleared from the factory of the manufacturer after payment of appropriate duty of excise leviable thereon under Chapter 38 of the Central Excise Tariff Act, 1985. These pesticides are diluted by the addition of certain dilutants/solvents or inert carriers. The dilution of the highly concentrated pesticides results, it is alleged, in lowering the concentration of the product. The products even after dilution are marketed by the same name and style. This activity of dilution of highly concentrated pesticides has been held to be a non-manufacturing activity by the Customs,Excise and Gold (Control) Appellate Tribunal, New Delhi, in their decision and judgment passed in the case of Collector of Central Excise v. Markfed Agro Chemicals 1993 (68) ELT 848. The said judgment was rendered by the Tribunal on 15th September, 1993.