BLACK DIAMOND BEVERAGES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ application was moved by the petitioner for a declaration that Central Excise Notification No. 203/87, dated 9th September, 1987 issued in exercise of powers conferred by Rule 57A of the Central Excise Rules, 1944 whereby the Central Government made amendment in the notification of the Government of India and the Ministry of Finance (Department of Revenue) No. 177/86-Central Excise, dated 1st March, 1986 whereby the benefit of Modified Value Added Tax (referred to as MODVAT) system to aerated waters was withdrawn.

(2.) The fact of this case in short is that the petitioners are manufacturers of aerated waters viz. 'Gold Spot', 'Limca', Thums Up', 'Rim Zim' and 'Bisleri Soda' which are manufactured in the factory of the petitioners at Calcutta. It is stated that the petitioner company is manufacturing aerated waters on the basis of raw materials supplied by M/s. Parle (Exports) Private Ltd.

(3.) Aerated waters, as excisable commodity was brought under Excise Duty with effect from 1st of March 1970 under Item No. 1-D in the First Schedule to the Central Excises & Salt Act, 1944. While the said levy was in force, the Central Government under the provisions of Rule 8 of the Central Excise Rules, 1944 (referred to as the said Rule) issued a Notification No. 201/79-C.E., dated 4-6-1979 as amended from time to time, exempted all excisable goods on which the duty of excise is leviable and in the manufacture of which any goods falling under Item 68 of the First Schedule to the said Act, had been used as raw-materials or component parts from so much of duty of excise leviable thereon as was equivalent to the duty of excise already paid upon the said raw-materials are components upon the terms and conditions mentioned therein. On the basis of the said Notification No. 201/79-C.E., dated 4-6-1979, the petitioner company was availing the benefit of the exemption as a manufacturer of Aerated waters in regard to the bottles and crowns as well as synthetic essence known as 'Non-alcoholic Beverages' fee under Item 68 of the First Schedule to the said Act and accordingly the petitioner No. 1 availed of set-off under the said Notification No. 201/79-C.E., dated 4-6-1979 in respect of the excise duty paid upon the synthetic essence used in the manufacture of aerated waters.