V R INDUSTRIES Vs. SUPERINTENDENT OF CENTRAL EXCISE

JUDGEMENT

(1.) This writ petition has been filed seeking directions to refund excise duty of Rs. 7,79,584-96 Ps. which the petitioner has paid for the period from April, 1981 to January, 1983. It is the petitioner's case that the said amount was paid under mistake and on wrong demand made by the excise authorities and on coming to know that it was not liable to pay, it had made several representations, but of no avail and at last invoked the jurisdiction of this Court under Article 226 of the Constitution of India.

(2.) M/s. Duncan Tea Sales Limited, Calcutta is the manufacturer of the tea and the said loose tea is sent to the petitioner for packaging varying in weight from 3 grams to 500 grams and after the said package, the petitioner delivers back the said tea in packages to M/s. Duncan Tea Sales Limited. The loose tea sent by M/s. Duncan Tea Sales Limited had already suffered excise duty. But, the petitioner was made to believe that for packaging also, he needs to obtain licence and the petitioner had obtained licence and in accordance with the conditions of licence, he had paid the excise duty. The question that arises for consideration is as to whether the act of packaging by the petitioner involves any manufacturing process so as to attract the excise duty under the Central Excise Act, 1944 (hereinafter referred to as 'the Act'). The charging provision is Section 3(1), which reads:

(3.) The question for consideration is as to whether loose tea received from Duncan Tea Sales Limited and picking it and packaging it in various sizes and sending it back to M/s. Duncan Tea Sales Limited, which sells it in market, involves any manufacturing process?