THE MADRAS ALUMINIUM CO. LTD. Vs. THE JOINT SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE AND INSURANCE

JUDGEMENT

(1.) This writ petition coming on for hearing on Monday, the 20th day of June, 1977 upon perusing the petition and the affidavit filed in support thereof the order of the High Court dated 19.2.1974 and made herein and the counter affidavit filed herein and the records relating to the order in F. 199/27/73/CX. VA dated 11.12.73 on the file of the respondent herein and comprised in the re turn of the respondent herein to the writ made by the High Court and upon hearing the arguments of Mr. V.K. Thiruvenkatachari for M/s. Subbaraya Aiyar and Padmanabhan, Advocates for the petitioner and of Mr. T. Chengalvarayan, Senior Central Government Standing Counsel on behalf of the respondent, and having stood over for consideration, till this day, the court made the following order:

(2.) By virtue of the power conferred under the Essential Commodities Act 1955, the Ministry of Petroleum and Chemicals Government of India, issued an order called the Aluminium Control Order of 1970, on 20th March, 1970. The object of the control order is to control and fix the sale price of aluminium in any form covered by the order. On 24.5.1971, the Government of India issued an amended order and a notification. Under the order S.C. 2084 'sale price' in the Control Order was redefined as follows:

(3.) The Government of India also issued a notification No. 53 -A/71 dated 24th May 1971 exempting aluminium falling under sub -items (a) and (b) of Item 27 of the First Schedule. According to the said notification, the exemption of duty leviable for a manufacturer is the amount of duty calculated at 30 per cent of the value of Rs. 1257/ - per tonne. As per Sec. 4(a) of the Act, the value is the wholesale cash price, for which an article of the like kind and quality is sold or is capable of being sold at the time of the removal of the articles chargeable to duty from the factory. The explanation lays down that in determining the price of any article under this Sec. no abatement or deduction shall be allowed, except in respect of trade discount and amount of duty payable at the time of the removal of the article chargeable with duty from the factory.