HINDUSTAN LEVER LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY Notification No. 121/72 dated April 1, 1972, in exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue and Insurance) No. 39/72 dated 17-3-1972, the Central Government exempted vegetable product falling under Item no. 13 of the First Schedule to the Central Excises and Salt Act, 1944, in the manufacture of which indigenous cotton seed oil is used and cleared from a factory in any quarter of a financial year, from so much of the duty of excise leviable thereon as was equivalent to the amount calculated, at the rate specified in column 3 of the Table annexed thereto, on the quantity of indigenous cotton seed oil used in the manufacture of such vegetable product to the extent specified in column 2 of the said table. The table in question shows, under column 2, the extent of indigenous cotton-seed oil used in the manufacture of vegetable product and column 3 shows the rate of metric tonne of indigenous cotton-seed oil.

(2.) THE said notification was supersed by another Notification No. 230/72-CED dated December 15, 1972 thereby slightly changing the percentage of the extent of indigenous cotton seed oil used in the manufacture of vegetable product and likewise this notification was superseded by another Notification No. 23/75-C. E. , dated March 1, 1975 once again changing the percentage of the extent of indigenous cotton seeds used in the manufacture of vegetable products.

(3.) THE first Petitioner, M/s. Hindustan Lever Limited, filed supplementary rebate claims on account of the cotton seed oil used in the manufacture of vegetable product for the period from july to December, 1975 and January to June, 1976 respectively for Rs. 35,829. 99 and Rs. 21,241. 42 relying on their own method of calculation. The first Petitioner excluded the quantity of the vegetable product wherein no cotton seed oil was used while arriving at the total quantity of vegetable product cleared. Therefore, a show cause notice was issued in February 24, 1977 calling upon them to explain the reasons as to why the said supplementary rebate claims should not be rejected as the same were not based on correct lines of calculation. A reply to the said show cause notice was filed by the first Petitioner raising various contentions. The Assistant collector of Central Excise, Bombay Division - F (fourth respondent) was of the opinion that according to Notification No. 121 of 1972, as subsequently amended, all the quantity of vegetable product cleared irrespective of whether the cotton seed oil was used or not, should be taken into account for computing the slab-wise rebate envisaged therein and the method adopted by the first petitioner in arriving at the total quantity of vegetable product was not correct and acceptable to him accordingly by his order dated July 6, 1977 he rejected the two supplementary rebate claims preferred by the first petitioner.