BLUE STAR LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition challenges the order of the Collector of Central Excise, Bombay dated 9-3-1989, wherein the Collector has confirmed the demand raised against the petitioners vide show cause notice dated 31/07/1986 for recovery of excise duty amounting to Rs. 48,40,347/-under section 11-A of the Central Excise and Salt Act, 1944 ('act' for short)and has also levied penalty of Rs. 10,00,000/- under Rule 173-Q of the Central Excise Rules, 1944 ('rules' for short ). The aforesaid recovery is on accont of 208 cabinets of walk-in-cooler manufactured and said to have been cleared by the petitioners during the period from July 1981 to 7-2-1986 without payment of excise duty.

(2.) THE facts relevant for the purpose of the present

(3.) THE petitioners have always been purchasing cooling units from the suppliers in the market. The dispute in the present case is whether the cold room for walk-in-coolers erected by the petitioners by the assembly of insulated panels can be said to be a cabinet i. e. a part of walk-in-cooler falling under Tariff Item 29-A (3) of the erstwhile Central Excise Tariff.