SUBHASH CHANDARNISHAT Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition under article 226 of the Constitution of India seeking to impugn an order dated 22nd October, 1971 passed by respondent No. 2 holding that the two products manufactured by the petitioner and known as Vasmol Emulsified Hair Oil and Vasmol Pomade are exigible to duty under Item 14 F of the First Schedule to the Central Excises and Salt Act, 1944(hereinafter referred to as "the said Act"), which entry was inserted in the said Act by the Finance Act, 1961.

(2.) The petitioner carries on business in Bombay in the name and style of" Hygienic Research Institute" as the sole proprietor thereof and inter alia, manufactures emulsified hair oil and pomade known as "Vasmol" in the trade. Both these products contain a small amount of lead acetated B.P and 2% of sulphur precipitated B.P. In the case of Vasmol Pomade the rest of the material is basically petroleum jolly to which are added some herbs and perfumes and in the case of Vasmol Emulsified hair Oil, the rest of the contents consists mainly of mineral Oil to which emulsifying agents are added and also a small amount of herbs and perfumes, I may mention at this stage this stage that although there is some differences regards the exact amount of lead acetate and sulphur precipitated in these products, it is common ground that these two products contain about 1.5% to 2% of lead acetate and about 1.5 to 2% of sulphur precipitated and that the rest of the contents thereof are such as would be found in an ordinary pomade or an ordinary emulsified Hair Oil.

(3.) The Finance Act, 1961 (Act No. 14 of 1961) came into effect in 1961 and by reason of sec. 13 of that Act the First Schedule of the said Act was amended, inter alia, by the insertion of Item b No. 14F therein. I shall come to the contents of this item in some detail a little latter. It may be mentioned here, however, that by reason of this item, hair lotions, creams and pomades were included in the ambit of Item 14F. On the 6th march, 1961 the Collector of Central Excise, Bombay issued a Trade Notice, inter alia, stated that under the tariff only face cream and snow, face powder, talcum powder, hair lotions creams and pomades were liable to duty and that the other products coming under Cosmetics and Toilet preparations would not be liable to duty". The Superintendent of Central Excise called upon the Petitioner to declare the stocks as on the midnight of 28th February/1st March, 1961. In response to this notice, the Petitioner submitted a declaration on 8th March, 1961. By his latter dated 23rd March, 1961 addressed to the Collector of Central Excise. Petitioner set out the reasons why according to him the aforesaid Vasmol products were not subject to taxation under Item 14F of the First Schedule to the said Act. The Assistant Collector by his letter dated 18th April, 1961 intimated to the Petitioner, inter alia, that the aforesaid Vasmol products were liable to be taxed at the rate of 25% ad-valorem under the said Item No. 14F. The Petitioner preferred an appeal against this decision. In support of the appeal the petitioner forwarded an opinion obtained by the petitioner from the Victoria Jubilee Technical Institution. By his order dated 20th December, 1961, the Collector Of Central Excise rejected the said appeal.