INDUSTRIAL LININGS BOMBAY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are engaged in the business of rubber-lining/re-rubber-lining of tanks, vessels, rollers, etc, at their factory at Bombay. They claimed exemption under Notification No. 176/77, dated 18th of June, 1977, but the same was rejected by the Assistant Collector of Central Excise, Bombay, Division 'L', on the ground that the value of the goods, including the value of the tanks, vessels, etc. supplied by the customers for rubber-lining had exceeded the limit of Rs. 30,00,000/-

(2.) Aggrieved by the said order, the petitioners preferred an appeal to the Collector of Central Excise (Appeals) who, by his order dated 29th of August, 1981 partly allowed the appeal. While disposing of the appeal, the Appellate Collector distinguished three categories among the activities of the petitioners. the first category was naked tanks and vessels received from the petitioners' manufacturers for the purpose of rubber-linings. The second and third categories were naked tanks and vessels or old tanks and vessels received from user-consumers or customers for rubber-lining. As far as the first category of activity was concerned the Collector (Appeals) held that the said activity amounted to manufacture and for the purpose of valuation under the notification referred to above not only the value of job charges but also the value of tanks and vessels were to be considered.

(3.) The petitioners did not challenge this order passed by the Collector (Appeals). Subsequently, the petitioners received a notice dated 19th of February, 1982 from the Government of India in the Ministry of Finance, asking the petitioners to show cause as to why the order-in-appeal of the Collector (Appeals) should not be revised insofar as that related to the latter two categories, namely rubber-lining of the tanks and vessels received from the customers or the old tanks and vessels for rubber-lining. It is after this that the petitioners have approached this Court under Article 226 of the Constitution of India.