LAWS(P&H)-1990-8-51

HINDUSTAN SYRINGES PVT LTD Vs. STATE OF HARYANA

Decided On August 06, 1990
HINDUSTAN SYRINGES PVT LTD Appellant
V/S
STATE OF HARYANA Respondents

JUDGEMENT

(1.) THE present Letters Patent Appeal has been preferred against the judgment of the learned single Judge dated 30-5-1989 vide which Civil Writ Petition No. 5056 of 1988 brought by the present appellant was dismissed.

(2.) M/s. Hindustan Syringes Private Limited, Faridabad (hereinafter called the appellant-Company) brought a civil writ petition under Article 226 of the Constitution of India for the issuance of an appropriate writ, order on direction quashing the order dated 4-5-1988, copy Annexure P8, passed by the Commissioner, Ambala Division, Ambala Cantt. , respondent No. 3. The appellant-Company pleaded that it was running an industry at NIT, Faridabad and was manufacturing syringes from glass tubes which it was purchasing from indigenous sources, as well as by import from foreign countries. Glass tubes are manufactured by M/s. Boro-sil Glass Works Limited, Bombay and these goods are used for making tubes, pippets, condensers, vials etc. , depending upon the manufacturers or persons who prepare the finished goods out of the raw material, namely glass tubes. The appellant-Company is manufacturing medical syringes from the tubes which it purchases from M/s. Borosil Glass Works Limited, Bombay. These goods are duly invoiced and are excisable goods and the manufacturing Company gets a clearance from the Excise Department by paying 40% duty under the head "glass and Glass Tubes". These tubes are finished goods for M/s. Borosil Glass Works Limited, but are raw material for the appellant-Company. The Excise Department as already differentiated glass tubes from syringes and charges 40% duty on glass tubes, where as it charges 15% duty on the sale of syringes. The glass tubes received from the manufacturing Company are in the length of 5 feet or more. The tubes are not of uniform diameter either inner or outer. These are cut into pieces of the required sizes for manufacturing barrels and plungers, the two parts of the syringes. These pieces are cut and then sorted out and are also checked for their diameters manually with respect to the inner diameter and with the help of some automatic machines regarding the outer diameter. The details of the cut-pieces used for barrels and plungers are further detailed as under: BARRELS PLUNGERS 1 Flange forming 1 Bottom sealing 2 Tip forming 2 Head forming 3 Shrinking 3 Bottom Marking 4 Fringing 4 Annealing 5 Baking 5 Grinding 6 Tip cutting and 6 Lepping tip grinding Glass tubes are called raw material for manufacturing syringes. Faridabad which was originally a notified, area committee, was converted into a Municipal Committee and thereafter, a schedule was imposed in the year 1962. The Municipal Committee assessed octroi duty on the basis of weight. Subsequently, the Faridabad Complex Administration issued its own Octroi Schedule under its own rate Schedule u/s. 21 of the Faridabad Complex (Regulation and Development) Act, 1971 which was sanctioned by the Haryana Government vide Notification No. 2389-ICI-72/10750 dated the 7th April, 1972. This Octroi Schedule consists of 145 entries, the relevant of which are as follows: "class VII Scientific apparatus, Instruments of Music and measurement "76 All kinds of scientific, mathematical, Optical, Surgical and Dentistry inst and equipments including telephonic, telegraphic and televisional apparatu goods 0-2 per rupee. Class XVII. (Miscellaneous) 138 Crockery and Glassware 145 All other articles not otherwise exempted and not chargeable under any o Up to 16-5-1987 respondent No. 2 charged octroi on glass tubes under its item No. 138 at the rate of Rs. 5. 60 per 100 kgs along with surcharge at the same rate. However, on 16-5-1987 when the transporters were bringing glass tubes purchased by the appellant-Company, the Faridabad Octroi Post Officials stopped them and in spite of protest, charged the same under item No. 76 at 0. 2 paise per rupee and only after charging this octroi, the import was allowed. The appellant-Company then filed a representation before the Chief Administrator respondent No. 2 on 23-5-1987 who ultimately passed the orders on 3-7-87 holding on the basis of the gate pass issued for removal of-excisable goods from the premises of M/s. Borosil Glass Works Limited, Bombay that the tubes are described in the gate passes as syringe tubing and tubing are, therefore, liable for octroi duty under item No. 76 of the Schedule. This order is Annexure Pl. The appellant-Company challenged this order of the Chief Administrator-respondent No. 2 before the Commissioner-respondent No. 3 u/s. 99 of the Haryana Municipal Act and also prayed for interim stay. The Commissioner-respondent No. 3, however, did not grant the stay and the appeal was not disposed of. Civil Writ Petition No. 8547 of 1987 was then presented to this Court in which a direction was issued to the appellant-Company to exhaust the statutory remedy of appeal and the Commissioner-respondent No. 3 was directed to dispose of the appeal within two months. The Commissioner dismissed the appeal on 4-5-1989, vide order Annexure P8, holding that the item syringe tubing necessarily falls under Scientific or Surgical goods, because syringe tubings necessarily were scientific or surgical goods. Feeling aggrieved, the appellant-Company challenged this order through C. W. P. 5086/1989 and inter alia pleaded that the tube is only raw material for manufacturing surgical syringes.

(3.) THE plea of the appellant-Company that the glass tubes imported were only glass-tubes and not surgical syringes or surgical instruments or surgical goods did not find favour with the learned single Judge and the writ petition was dismissed.