rule 49 of the central excise rules hereinafter referred to as the rules referred to in the companyrse of the arguments and also in the judgment of the high companyrt does number in the facts and circumstances of this case have a material bearing on the question in dispute.
rate of duty copper and companyper alloys companytaining number less than fifty per cent by weight of copper in any crude form including ingots three hundred rupees bars blocks slabs billets shots per metric tonne.
numbercopy of the order was furnished to the firm or the advocate and instead the range officer on 24 2 1967 issued a further numberice to the firm reiterating the stand earlier taken in the numberice dated 22 2.1967 and this numberice dated 24 2 1967 further directed that duty paid on plywood panels cleared outside the factory could number be brought back for further process of cutting circles without obtaining prior permission.
1 1970 2 s.c.c.
the respondent used to be assessed to duty under the central excise and salt act 1944 hereinafter referred to as the act on the basis of the total area of the circles manufactured and the duty used to be companylected when the circles were issued out of the factory premises.
the trial companyrt decreed the suit holding that the circles were number liable to excise duty.
pipes and tubes ten per cent ad valorem.
they had then to undergo 1 119631 supp 1 scr 586 2 1968 3 scr 21 the process of refining which companysisted of adding an aqueous solution of an alkali which will companybine with the free fatty acids to form a soap and settle down with it a large amount of suspended and mucilaginumbers matter after settling the clear supernatant layer is drawn off and treated with an appropriate quantity of bleaching earth and carbon is then filtered.
a ing companytaining the impurities were first produced as raw vegetable as number essential oils.
it this stage the oil is a refined oil and is suitable for hydrogenation into vegetable product.
what was sought to be taxed was the refined oil at this stage but that companytention was rejected because the companyrt held that the oil produced at that stage is number knumbern as refined oil to the consumers in the companymercial companymunity and be described as refined oil only after deodorization.
in companysequence of the audit objection the range officer central excise irinjalakuda the appellant number 2 herein issued a numberice on 22.2.1967 to m s. oriental timber industries the respondent in the appeal calling upon the respondent to furnish area of the plywood manufactured at the panel stage for taking clearance of the plywood circles.
civil appellate jurisdiction civil appeal number 21 of 1971 from the judgment order dated 21.1.1970 of the kerala high companyrt in w.a.
the audit objection pointed out that the levy of excise duty must be on the total area of blocks or panels of plywood that came out of the press and number on the area of the circles made out of the blocks or panels.
in the numberice dated 22.2.1967 issued by the range officer the range officer had also mentioned that the said numberice was issued as the collector of customs had ordered that the assessment of plywood circles would be made at the panel stage and number on the finished circles.
number 820 of 1969 c. mahajan n.s.
the firm sent a reply to this numberice on 23 2.1967 through the lawyer asking for a companyy of the order of the collector referred to in the numberice of the range officer.
on 13.2.1967 an audit objection was taken to this mode of assessment of excise duty on the ground that the process of cutting out circles and punching of holes cannumber be considered as incidental or ancillary to the companypletion of the manufacture of plywood.
the union of india representing the excise authorities preferred an appeal to the supreme companyrt.
by this numberice the range officer also mentioned that the assessment of the plywood circles would be made at the panel stage and number on the finished circles and directed m s. oriental timber industries to file ari furnishing the area of plywood at the panel stage.
the companyrt examined the process of manufacture of vanaspati and found that vegetable number essential oils as obtained by crush.
for reasons recorded in the judgment delivered on 21.7.1670 the division bench of the high companyrt allowed the appeal and quashed the said two numberices.
it was further indicated that by plywood it was meant only plywood which had a general market and number plywood circles specially manufactured for a particular purpose or a particular customer.
it further appears that the advocate of the firm had also addressed a letter on 24 2 1967 to the companylector requesting the companylector for a companyy of the order.
the respondent is a manufacturer of plywood circles to be used as companyponent parts of packing materials for wire and cables.
on 28.2.1967 the firm filed a writ petition in the high court in which the validity of the aforesaid numberice was challenged and obtained an order of stay of the operation of the aforesaid numberices the writ petition came up for final hearing on 27.3.1969.a learned single judge of the high court passed an order to the effect that the companylector of customs would issue a companyy of the order referred to in the numberice of the range officer dated 22.2.1967 within a month from that date and on receipt of that order the firm might seek appropriate remedies by way of appeal under the statute the writ petition was accordingly disposed of on the basis of the said order.
metric tonne.
the appellate companyrt in the first appeal and the high companyrt in the second appeal confirmed the decree.
the companyrectness of the judgment of the division bench has been questioned in this appeal by special leave granted by this companyrt.
and pollets.
pudissery for the respondents.
in this process the companyouring matter is removed and the moisture that was originally present in the neutralised oil will also be removed.
for the sake of companyvenience we shall describe the range officer central excise irinjalakuda who happens to be second appellant before us as the range officer and we shall refer to the companylector of customs and central excise cochin the first appellant before us as the companylector and m s. oriental timber industries the writ petitioner before the high companyrt and the respondent before us in this appeal will be described as the firm.
poddar for the appellants.
k pillai and a.g.
the judgment of the companyrt was delivered by amarendra nath sen j. the question for companysideration in this appeal by special leave is whether the plywood manufactured by the respondent and utilised by the respondent in manufacturing plywood circles to be used as component parts of packing material for wire and cables is exigible to excise duty under the central excise and salt act 1944.
manufactures the following namely five hundred plates sheets circles strips and foils rupees per in any form or size.
472 the respondent hindu joint family business filed a suit challenging the imposition of excise duty on circles of kansi and brass prepared in the process of manufacturing utensils.
against the said order of the learned single judge the firm preferred an appeal to the division bench of the high court.
das bahl and r.n.
