MACHINE WELL ENGINEERS Vs. UNION OF INDIA UOI

JUDGEMENT

(1.) The Petitioners, which are Small Scale Industries and manufacturer of various goods including electrical appliances, under an agreement with Big Industrial Units including Bajaj Electricals Limited, affix brand name of Big Industrial Units like Bajaj Electricals Ltd. and sell the same to such Big Industrial Units, have challenged the Notification No. 223/87-Central Excise, dated 22-9-1987, mainly on the ground that the said Notification has classified Small Scale Industries into two classes, one which manufactures goods and sells the same either in the market or sells directly to Big Industrial House, which affixes its brand name on the goods and the other class of Small Scale Industries which manufacture the goods and affixes the brand name of the purchaser, a Big Industrial House.

(2.) As far as the 1st class of the Small Scale Industries is concerned, it is exempted from excise duty if the goods are upto the tune of Rs. 20,00,000/- under the Notification dated 1-3-1986. But as far as the 2nd class of Small Scales Industries are concerned, it is not eligible for such exemption.

(3.) As the common questions of law and facts were involved in all the writ petitions, the petitions were heard together and are disposed of by a common judgment.