APEX ELECTRICALS PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) SPECIAL Civil Applications Nos. 1447/80 and 1083/85 are filed by M/s. Apex Electricals Pvt. Ltd., other six petitions are filed by different petitioners but as the question involved in all these petitions is the same, all these petitions have been heard together and are being disposed of by this common judgment.

(2.) APEX Electrical is a manufacturer of power and distribution transformers. Such transformers are manufactured by assembling high tension and low tension and low tension coils as assembled cores made out of laminations. Laminations are prepared out of cold rolled grain oriented steel sheets. These sheets are not manufactured in India, and therefore, they have to be imported from foreign countries. They come in the form of rolls. They are first slitted into width of required specifications. After sliting is done, the slitted rolls, also known as strips, are further required to be cut into small pieces of required dimensions and designs depending upon requirements of the customers. The pieces which thus come into existence as a result of this process are known as electrical laminations. They were, at the relevant time, chargeable to excise duty under tariff item No. 28A of the First Schedule to the Central Excises and Salt Act, 1944.

(3.) APEX Electricals feeling aggrieved by the directions given in those letters, has filed Special Civil Application No. 1447 of 1980 challenging the said action of the respondents. As the six processors were also affected by the directions contained in the said letter, they have also filed separate petitions. In all these petitions Rule has been issued by this Court. So far as Apex Electricals is concerned, it was given a show cause notice by the time the said petition came up for hearing for granting of interim relief and, therefore, while granting the interim relief, this Court permitted the respondent to go on with the adjudication proceedings. No show cause notices were issued to the other six processors. On 27 -11 -1984, the Collector of Customs and Central Excise, Vadodara, passed an order directing Apex Electricals to pay the duty of Excise at appropriate leviable rate under Tariff Item 28A, on electrical laminations manufactured by the aforesaid six processors for Apex Electricals, on the basis that they had really manufactured those laminations for and on behalf of Apex Electricals and thus Apex Electricals manufactured and illicity removed those goods. He also imposed a penalty of Rs. 15 lacs on Apex Electricals. Aggrieved by that order, Apex Electricals has filed Special Civil Application No. 1083 of 1985.