GARLICK ENGINEERING Vs. ASSISTANT COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) The question which arises in this Petition is as under:

(2.) The Petitioner is claiming to be the manufacturer of cranes which were covered under the Tariff Item No. 68 of the First Schedule to the Central Excise and Salt Act, 1944 ( hereinafter referred to as "the said Act"). According to the Petitioner, the appropriate rate of duty of central excise leviable on the aforesaid item of cranes was fixed at 12% ad valorem. In the year 1985, a Bill was introduced in the Parliament with a view to rationalise and simplify the classification of excise on goods. The Bill was introduced under the name of the Central Excise Tariff Act, 1985 ( hereinafter referred to as "the said Act of 1985").

(3.) The said Act of 1985 which was gazetted showed that the rate of duty against the sub heading 8426 was 15% ad valorem. On 6th March, 1986, the Petitioner filed Classification List effective from 1st March, 1986 in which the cranes were shown as falling under Sub heading 8426 and the applicable rate of duty as 12% ad valorem. The Classification List was approved, but, the rate of duty was altered to 15% ad valorem. The Petitioner filed a fresh classification list on 30th March, 1986 showing the rate at 12%. The Petitioner filed a classification list on 7th April, 1986 effective from 1st April, 1986 showing the rate of duty of 12% ad valorem falling under Sub heading 8426. The approval was received by the Petitioners on 11th June, 1986. By letter dated 9th April, 1986, the approved rate of duty effective from 1st March, 1986 was altered to 12% ad valorem. The Petitioner was served with the show cause notice dated 26th August, 1986 issued by the first Respondent demanding duty amounting to Rs. 15,08,034.20 ps in respect of clearance of cranes during the period from 1st March, 1986 to 31st July, 1986. The allegation in the notice was that the duty payable on the cranes was 15% ad valorem and not 12% ad valorem. For the subsequent period also, a show cause notice dated 30th January, 1987 was issued demanding the duty of Rs. 2,90,244.75 ps. on the same ground. The order in adjudication was passed by the first Respondent on 8th August, 1987 confirming the demands made under both the show cause notices. The Petitioners being aggrieved by the said order preferred an Appeal before the Collector of Central Excise (Appeals) along with a Stay Application.