MAHINDRA AND MAHINDRA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Article 226 of the Constitution relates to proceedings originally commenced under the Central Excises and Salt Act, 1944, and the Central Excise Rules, 1944, framed thereunder (hereafter, for the sake of brevity, referred to as the Act and the Rules).

(2.) The International Tractor Company of India Limited - engaged at the relevant time in the manufacture of tractors - was by order dated 18th May 1978, passed by this Court in Company Petition No. 789 of 1977, amalgamated with Mahindra & Mahindra Limited, the petitioners herein. Both these are, hereafter for convenience, referred to as the petitioners.

(3.) For manufacture of tractors the petitioners needed parts and accessories of motor vehicles for use as original equipments. Tariff Item No. 34A of the First Schedule to the Act prescribed the rates of duty for such parts and accessories. In exercise of its powers under Rule 8 of the Rules, the Central Government issued on 29th May 1971 a notification, being Notification No. 101 of 1971-C.E., exempting motor vehicle parts, which were therein specified, from the whole of the duty of excise leviable thereon, provided (a) it was proved to the satisfaction of the Collector Excise that the said parts were intended to be used as original equipment parts by the manufacturers of motor vehicles falling under Item No. 34 of the First Schedule to the Act and (b) in relation to any concession in respect of such parts, the procedures set out in Chapter X of the Rules providing for remission of duty on goods used for special industrial purposes was followed.