AMRUTHSHEELE Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner -firm (M/s. Amruthsheele) has its factory at Makrana (Rajasthan) for sawing rough marble blocks into rough marble slabs on job basis. It was set up during the year 1981 and started its operation since January, 1982. According to the petitioner -firm, sawing rough marble blocks into rough marble slabs does not amount to process of manufacture and does not involve any manufacturing process as defined in Section 2(f) of the Central Excises and Salt Act, 1944, (for short, 'the Act'). According to the petitioner -firm, it was under a mistaken impression that it is liable to pay excise duty on its job work. The petitioner -firm applied to the respondent No. 2 vide a registered A.D. letter No. AMSL/77/82, dated the 20th March, 1982 that it has installed and commissioned one Gang Saw Clycor -60 machine, and the total expenses in fixing the assets in the plant and machinery is within the limit of Rs. 20 lacs.

(2.) IT was also intimated to the petitioner -firm to show as to what was the costs of the machines. But, the respondent No. 4 found that the value of the plant and machinery installed is well over Rs. 20 lacs and as such, notification No. 105/80 for exemption is not applicable to the petitioner -firm. Thereafter, the respondent No. 3 under its letter dated the 4th September, 1982 (Annexure 3) intimated the petitioner -firm that the costs of plant and machinery has been mis -declared as Rs. 4,94,300/ - by not including the cost of the items as given in para 8 of the writ petition.

(3.) THIS Court while admitting the writ petition ordered issue of show cause notice to the respondents in S.B. Civil Second Stay Application No. 743/83, and ordered on April 19,1983 that, in the meantime, the respondents are restrained from taking any further proceedings in pursuance to Annexure 7 dated 15 -3 -1983.