BABUBHAI NYLCHAND MEHTA Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, inter alia, carries on business of making of waterproof kraft paper under the name and style of Neptune Waterproof Manufacturing Company. This concern is the sole proprietary concern of the petitioner. The petitioner purchased kraft paper and other requisite ingredients from the open market and manufactures certain types of kraft paper by the process of bonding, lining, impregnating and sandwiching certain other ingredients with kraft paper. The items under dispute are: (1) Betumenized water proof packing paper, (2) Polythenelined kraft packing paper, (3) Waxed kraft packing paper, (4) Jute-Lined betumenized waterproof packing paper, (5) Waxed kraft packing paper and (6) Hessian lined kraft paper. The only difference between Items 3 and 5 is that item 3 refers to waxed kraft packing paper of 40 gms., 50 gms. and 60 gms., while Item 5 refers to waxed kraft packing paper above 65 gms.

(2.) The respondent have levied excise duty under the Central Excises and Salt Act, 1944 on these items on the ground that the petitioner "manufactures" these items.

(3.) These goods fall under Item 17(2) of the First Schedule to the Central Excises and Salt Act, 1944. The relevant provisions of the said item at the material time were as follow :---