TIM SHAW PRIVATE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The present Rule was issued on 3/8/1982 at the instance of the writ petitioner, a private limited company, challenging the impugned orders dated 31st January 1981.21st August 1981 and 1st January 1982, being in annexures "A", "B" and "C" respectively.

(2.) It is stated in the writ petition that the writ petitioner is a small scale unit which undertakes job work like peeling vaneer from logs supplied by manufacturers of plywood. It is the specific case of the petitioner that it peels 'timber in log form' on job work basis for Veneer Mills Private Limited, a Central Excise assessee for manufacture of plywood. The Superintendent of Customs and Central Excise, Jaypur issued a show cause noticed on the petitioner saying that the petitioner had cleared commercial veneer (Tariff Item No. 68) without payment of duty and thus had contravened Rules 173F and 9(1) of Central Excise Rules. It is the case of the petitioner that in terms of Notification No. 119/75-C.E. Excise Duty will be charged only on the amount realised as job charges by the petitioners.

(3.) By the impugned order dated 31st January 1981 passed by the Assistant Collector, Customs & Central Excise, Dibrugarh, the said authority held that the manufacture of Vaneer out of logs supplied by Vaneer Mills cannot be regarded as job works and as such exemption under Notification No. 119/75 aforesaid is not applicable in the case of the petitioner.