ADVANI-OERLIKON LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The 1st petitioner is a public limited Company (referred to hereafter as the "company") incorporated under the Indian Companies Act, 1913. The 2nd petitioner is a Director of the Company. The Company carries on business of manufacturing Copper Coated Mild Steel Wires (C.C.M.S. Wires) and also manufactures welding electrodes of various types. In May 1971, Tariff Item 50 to the 1st Schedule of the Central Excises and Salt Act, 1944, was introduced whereby excise duty was levied on "welding electrodes, all sorts" for the first time at 15 per cent ad valorem. Under the self-removal procedure the Company was required to file the classification list from year to year, which the Company did, showing its welding electrodes as excisable and the C.C.M.S. Wires as non-excisable. This classification list was filed by the Company on 1st October, 1971 and was approved by the Superintendent, Central Excise, namely, the 2nd respondent, on 8th October, 1971. Similar classification lists were filed by the Company from year to year and were approved by the Superintendent. On 23rd January, 1973, a tariff advice was issued by the Central Board of Excise and Customs, that "Submerged Arc Welding Wires" are liable to excise duty as "Welding Electrodes" under Tariff Item No. 50. On 2nd February, 1973, without notice to the Company, an ex-parte order was passed by the Superintendent classifying the Company's C.C.M.S. Wires as liable to excise duty under Item 50. By this order, the Superintendent stated that he had considered that -

(2.) Against this order, the Company filed an appeal on 30th April, 1973 to the Appellate Collector. The Company's appeal was rejected by the Appellate Collector on 27th July, 1975 who held that the Company's C.C.M.S. Wires were assessable to duty under Tariff Item 50 for the following reasoning :-

(3.) The Company's revision application to the Revisional Authority was rejected by the latter's order dated 11th July, 1977/26th August, 1977. The Revisional Authority held that Tariff Item 50 includes welding electrodes, all sorts, irrespective whether coating with flux had been done or not and that welding electrodes need not necessarily be coated with flux.