KINETIC HONDA MOTORS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution of India.

(2.) BRIEFLY stated, the facts of the case are that the petitioner is company incorporated under the Companies Act, 1956. It has set up a plant at Pithampur wherein it manufactures scooters under brand name "kinetic HONDA" falling under Chapter 87 of Central Excise Tariff Act, 1985. This activity is being pursued in collaboration with the Japanese Company M/s Honda Motor Company. The petitioner/company for housing its new industrial Unit gave turnkey contract to M/s. Gunnon Dunkerley and Co. Ltd. Bombay. This contractor, was provided with duty paid iron and steel products like sheets, angles, and channels for the purpose of construction of shed. The said contractor subjected such articles to the process of drilling, cutting and welding. After this activity, these articles were placed in their respective position in the shed. The articles so used, were not liable to be classified as 'goods' within the meaning of Section 3 of the Central Excises and Salt Act, 1944. The respondent No. 2 (Collector) however, issued show cause notice dated 22/23rd June, 1987 to the petitioner and demanded duty as specified in the notice (Annexure A ). Aggrieved, this petitioner has filed this writ petition. The respondents have filed the return in oppugnation.

(3.) I have heard both the sides.