GUEST KEEN WILLIAMS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petition challenges the Order of Superintendent of Central Excise, Range I (Bom III), Thana dated 21st August, 1972 and the Order in Appeal dated 15th September, 1974 (Ex. F. to the Petition). Under these Orders Raw 'Die-Cast Rotors' which are manufactured by the petitioners, are classified under Tariff Item 30(4) of the Central Excises and Salt Act, 1944, the First Schedule. Item 30(4) levies and valorem duty of 20% on electric motors and parts thereof. The raw die- cast rotors, which are manufactured by the Petitioner, require to be processed in a number of ways before they can be used as parts of electric motors. In this connection the Petitioners have relied upon a number of affidavits of people in the trade in order it establish that the items manufactured by the Petitioners cannot be considered as part of electric motors. This position is not controverted by the respondents. In the order dated 21-9-1972 the Superintendent of Central Excise has stated in para 3 that "As per the Orders a rotor complete with cage and stampings with or without shaft is assessable to duty under Tariff item No. 30(4)." Similarly in the Order in Appeal dated 15-9-1974 it has been held that the item manufactured by the petitioners is a final Rotor Assembly because it has cage and stampings and the process of die casting is done in the appellants' factory. This appears to be reproduction of the words used in an earlier trade notice issued in this connection. Hence both these orders are issued without arriving at any independent conclusion. In Orient Paper Mill Ltd. vs. Union of India it has been held by the Supreme Court that if the power exercised is a quasi-judicial power, that power cannot be controlled by the directors issued by the Board. Hence the orders which have been passed in the present case pursuant to directions issued are not valid or binding. Subsequently a trade notice dated 12-12-1975 has been issued by the Collector of Central Excise, Bombay in which it is specified that Die- Cast Rotors were only an intermediate stage of production and that they were not fit for use as rotors, they are not capable of being used directly as rotors in any Electric Motor or such allied systems since various operations are required before they can be commercially accepted as rotors; hence they should not be classified as "Rotors" under Items 30(4) of Central Excise Tariff. The Respondents are stopped from contending to the contrary. Mr. Bhabha in this connection has relied upon the observation of the Gujarat High Court in Navgujrat Paper Industries vs. Superintendent of Central Excise & Anr., 1977 1 ELT 67. The raw die-cast rotors manufactured by the Petitioners do not fall under Tariff Item 30(4).

(2.) Rule is, therefore, made absolute in terms of prayer (a) save and except the last portion thereof which is bracketed in red pencil.

(3.) Bank guarantee furnished pursuant to order dated 4-12-1974 is discharged.