LARSEN AND TOUBRO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner prays for the issue of a writ of declaration to declare the impugned circular of the 2nd respondent in No. 315/31/97 -CX., dated 23 -5 -97 as ultra vires of Sections 55 -A and 37 -B of the Central Excise Act, 1944 and Article 265 of the Constitution of India insofar as the petitioner is concerned.

(2.) HEARD Mr. Arvind P. Datar, learned senior counsel appearing for the petitioner and Mr. K. Veeraraghavan, learned Additional Central Government Standing counsel for the respondents. With the consent of counsel for either side, the writ petition itself is taken up for final disposal and arguments were advanced. It is also to be pointed out that in the light of the stand taken by the counsel for respondents, it may not be necessary to examine the substantial contention advanced by the learned senior counsel for the petitioner seeking the relief of declaration in respect of the Notifications concerned.

(3.) THE product concrete mix was not specified anywhere in Chapter 28 of the Central Excise Tariff Act, 1985. It was classified under Chapter sub -heading 38.23. However, as both the concrete Mix and Ready Mix concrete were closely related products, confusion arose in respect of classification and levy of duty. The clarification was issued by the Central Board of Excise and Customs to sort out the confusion. The product concrete mix is classified under Chapter SH 3824.90 while the product Ready Mix concrete is classified under 3824.20 from the introduction of Union Budget for the year 1997 -98. In the Finance Act, 1997, the classification of Ready Mix Concrete has been introduced in the Tariff Schedule and, therefore, no question of ultra vires arise according to the respondents.