WITCO MATCH WORKS KALUGUMALAI Vs. UNION OF INDIA

JUDGEMENT

(1.) IN respect of matches which is an excisable commodity, the Central Government issued a notification No. 42 of 1981, dated 1st March, 1981, in exercise of their powers conferred on them under sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, and that reads as follows- "IN exercise of the powers conferred by sub-rule @2.5x4.5=(1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts matches in or in relation to the manufacture of which none of the following mechanical processes, namely :-

(2.) THE petitioners who manufacture matches, put back the same in boxes in which the outer slide alone is made of card board, claimed that they are also entitled to the benefit of exemption and the demand by the first respondent for payment of excise duty at the rate of Rs. 4.50 per gross boxes of 50 matches each, was illegal. It may be mentioned that under item 38 of the First Schedule to the Central Excises and Salt Act 1944, the normal rate of duty is Rs. 1.30 for every 1000 matches or fraction thereof, so that for a gross boxes of 50 matches, each, the normal duty payable will be Rs. 10.40. Under the notification above cited, if in relation to the manufacture of matches, mechanical processes are not involved, excise duty was payable only at the rate of Rs. 4.50 per gross boxes of 50 matches each and the exemption covered the duty payable for over and above the said sum of Rs. 4.50. A further exemption is provided even among those who manufacture matches not using mechanical processes, in cases where matches are packed in boxes in which both the outer slide as well as the inner slide are made of card board or where such matches are packed in boxes in which the inner slide is made of card board. As already stated, the petitioners herein are manufacturers of matches where the matches are packed in boxes in which the outer slide alone are made of card board, on the ground that the notification did not cover such categories and that the first respondent demanded duty to be paid at the rate of Rs.. 4.50 per gross boxes of 50 matches each.

(3.) THOUGH the interim injunctions granted pending the writ petitions will lapse along with the writ petitions by way of abundant caution, we vacate all the interim injunctions granted in these cases. The writ appeals are dismissed. There will be no order as to costs.