GEEP FLASHLIGHT INDUSTRIES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER M/s. Geep Flashlight Industries Ltd. is a public limited company incorporated under the Indian Companies Act, 1913 and in a manufacturer of dry cell batteries. Zinc cans, manufactured out of zinc ingots, ate needed for manufacturer of dry cell batteries of which the process, according to the petitioner, involving melting of zinc ingots purchased by the petitioner in a furnace and then pressing the same into moulds to form zinc slabs.

(2.) THE petitioner claims that it started producing these rough rolled flat forms of zinc in its factory from February 15, 1969. Though the authorities Of the Central Excise Department of the Union of India were frequently visiting the factory of the petitioner at Allahabad and inspecting the entire process of manufacture of dry cell batteries including the initial stage of the melting of Zinc ingots and were fully aware that these rough rolled zinc flat forms were being produced by the petitioners, they never considered that these flat form as could be described as 'zinc sheet' or were exigible to duty as such under item No. 26 -B(2) of the First Schedule of the Central Excises and Salt Act, 1944. On the instructions, however, of the Central Board of Excise Department at Allahabad decided in February 1973 to treat these rough rolled flat forms of zinc as 'zinc sheets' for which a duty of excise was leviable under the aforesaid item No. 26 -B(2) of the first schedule of the Act.

(3.) IT appears that on July 28, 1973, a notice under Rule 10 -A under the Central Excise Rules, 1944 was issued by the Superintendent of Central Excise, Allahabad requiring the petitioner to show cause against the recovery from it a sum of Rs. 49,00,139.33 by way of excise duty for zinc sheets manufactured by it during the period between March 15, 1969 and February 12, 1973. The petitioner rejected to the demand but failed. The Assistant Collector, Central Excise, Allahabad confirmed the demand by his order dated April 8, 1976. Writ petition No. 373 of 1976 has been filed by the petitioner assailing the demand on various ground most of which are identical to those taken by it in its earlier petition. No. 370 of 1976. The relief asked for by the petitioner in this petition includes a prayer for quashing the order dated April 8, 1976 passed by the Assistant Collector, Central Excise, Allahabad.