ROPLAS INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners are manufacturers of various fibre glass reinforced plastic articles such as jeep bodies, side cars, galley carts, chemical equipment, automotive items, etc. They also manufacture certain types of food trolleys/carts, beverage and/or bar trolleys/carts. They are specially manufactured by the petitioners for supply of these items to the Indian Airlines and air-India for use in various aircrafts. They are of different dimensions so as to fit the various equipments in a particular type of aircraft. Unlike the normal kitchen trolleys, these trolleys manufactured by the petitioners for use in aircraft also have space for storage of trays and beverages to be placed in an insulated space below the top tray. When they are not in actual use in the aircraft, they are fitted in the special niches provided for them in the galley by means of a fastening mechanism. They are mostly of aluminium frame and their body is made of fibre glass or decorative laminate.

(2.) TILL the end of 1977, for the purpose of assessment of Central Excise duty under the Central excises and Salt Act, 1944, these trolleys were classified and cleared under Tariff Item 68 of the first Schedule. However, on 25th January, 1978 the respondent-Department issued a show cause notice upon the petitioners inter alia contending that the trolleys manufactured by the petitioners should be classified under Item 40 as 'steel furniture'. Another show cause notice on the same basis was issued on 28th January, 1978 demanding differential duty from the petitioners. The petitioners vide Exhibit 'h' to the Petition dated 22nd February, 1978 and Exhibit 'i' to the petition dated 23rd February, 1978 filed their reply to the show cause notices. However, the respondents' authorities by their order dated 6th May, 1978 upheld the Department's contention that the trolleys are to be classified under Item 40 and confirmed the demand for differential duty.

(3.) THE petitioners promptly informed the authorities that they would pay duty under Item 40 under protest.