RALLIWOLF LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER No. 1 is a company registered under the Companies Act and runs a factory at Lal bahadur Shastri Marg, Mulund, Bombay for manufacture of portable power tools which were classified under Tariff Item No. 51a of the Central Excise Tariff. The Company also manufactures armatures and field coils which are used as components in the manufacture of portable power tools. The Company had claimed that the parts which constitute the electric driving mechanism and an integral part of the portable tools were not electric motor under Tariff item 30. The Central Board of Revenue had informed the Company in 1961 that levy of excise duty is not permissible in respect of electric motors and tools.

(2.) IT is the claim of the petitioners that upto January 2, 1984 the duty was paid on parts as parts of electric motors under Tariff Item No. 30d of Central Excise Tariff. The Company filed fresh classification list and classified parts under Tariff Item No. 68, which is residuary item. The company received show-cause notice from Assistant Collector of Central Excise and after considering the reply by order dated November 15, 1984 the Assistant Collector classified the pasts under Tariff Item No. 68. On the basis of the aforesaid order, the Company filed refund claims for various periods commencing from January 2, 1984. The refund claims remained unattended and thereupon the company held the present petition for directions to the Assistant Collector to refund the amount. The petition was duly admitted.

(3.) DURING the pendency of the petition, the collector of Central Excise set aside the order passed by the Assistant Collector on November 15, 1984 classifying the parts under Tariff Item No. 68. The Collector in appeal held that parts of electric motors are classified under Tariff Item No. 30d. The Company thereupon amended the petition and challenged the order of the Collector. The amendment was granted.