STANDARD BATTERIES LIMITED Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) The appellant original petitioner (hereinafter referred to as the petitioner) is a manufacturer of electric storage batteries. During the period of April 1968 to March 1970, 3385 battery containers which the petitioner company had obtained from other manufacturers became waste. According to the petitioner, these containers became waste due to the manufacturing process, such as, slotting, drilling, grinding etc. and the containers thus became defective and unusable.

(2.) The petitioner informed the Superintendent of Central Excise, that it would like to destroy these containers and the petitioner should, therefore, be given a credit in respect of them in their R.G. 23 account. The account referred to was an account kept by the Excise Department of the stock of material or component parts received for the manufacture of finished excisable goods prescribed under Rule 45A. The system of maintaining this account contemplates that as and when a manufacturer receives materials or component parts on which the duty of excise or additional duty has been paid, the amount of duty paid or additional duty paid is entered to the credit of the manufacturer. The amount standing to the credit of the manufacturer is deducted from the excise duty when the finished product in which the material or the component part is used and the manufactured goods are removed from the factory against duty payable in respect of the finished product.

(3.) The Superintendent of Central Excise, however, took the view, that when the number of containers would be destroyed, then, the amount of duty credited in respect of that number would be debited in the account R.G. 23.