AUROFOOD PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS Writ Petition coming on for hearing on Thursday the 15th day of December 1977, Friday the 6th day of January, Monday the 9th day of January, upon perusing the petition and the affidavit filed in support thereof the order of the High Court, dated 12-8-1975 and made herein, and the counter affidavit filed herein and the records of the Respondents culminating in the order of the first Respondent dated 16-6-1976 and comprised in the return of the respondents herein to the Writ made by the High Court, and upon hearing the arguments of Mr S. Ramasubramaniam for M/s. King and Partridge, Advocates for the Petitioner, and Mr. T Chengalvarayan, Senior Central Government Standing Counsel on behalf of the Respondents, and having stood over for consideration till this day, the Court made the following order.

(2.) THE petitioners manufacture biscuits at their factory at Auroville, Pondicherry. THE biscuits are items falling under Tariff Item 1C of the Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act). In November 1972 the third respondent (Assistant Collector of Central Excise, Pondicherry Division) visited the petitioners factory and in the course of the said visit he expressed the opinion that since the two price lists were in force for sale of the petitioners' products, one with reference to Pondicherry and another with reference to the entire southern region, the petitioners should submit two price lists and pay excise duty in accordance with the prices mentioned in those lists. THE petitioners submitted to the third respondent that such a claim is opposed to the basic principles of levy of excise duty which is only on the manufacture, and therefore objected to the proposal.

(3.) THE first respondent erred in law in stating that biscuits sold in nonreturnable containers are two distinct categories for the purpose of assessment to excise duty. THE entry 1C of the Schedule to the Central Excises and Salt Act, 1944 refers to 'biscuits' only and there is no jurisdiction for the first respondent to levy excise duty taking into consideration the value of the containers.