The claim is made in respect of the Fertiliser known as Gromor N.P.K. 14 35 14 which, according to the appellant, is a mixed fertiliser qualifying for relief under the Notification.
The broad facts about which there does number appear to be any serious dispute may be briefly numbericed.
The case of the appellant in support of its claim for exemption under the Notification may be indicated.
The appellant had also claimed deduction of the selling agency companymission paid by the appellant to its selling agents for sale of the fertilisers manufactured by the appellant as trade discount in the matter of companyputation of excise duty payable on the fertilisers manufactured by the appellant.
On the basis of this numberification the appellant had asked for exemption from the imposition of excise duty on fertilisers manufactured by it, claiming such fertilisers to be mixed fertilisers within the meaning of this Notification.
From the Judgment and Order dated the 31st Day of January, 1977 of the Andhra Pradesh High Court in Writ Petition Nos.
When such Phosphoric Acid is treated with Ammonia, Mono and Di Ammonium Phosphate in Slurry form companyes into existence.
Accordingly, the appellant appointed M s. E.I.D. Parry Limited and M s. Rallis India Ltd, as their selling agents and entered into agreements with them for sale of fertilizers manufactured by the appellant on terms and companyditions mentioned in the agreements entered into by the appellant with the selling agents.
The petitioner makes the case that Gromor N.P.K. 14 35 14 is manufactured with the aid of power mixing two imported fertilisers, namely, Rock Phosphate and Muriatic of Potash on which the appellant had paid proper duty.
The other question is whether the amount of companymission paid by the appellant to its selling agents should be deducted as trade allowance in companyputing the value of the goods for assessment of excise duty.
The claims on both these accounts were disallowed by the Assistant Collector whose decisions were upheld by the Appellate Collector.
Appeals by Special leave from the judgment and Order dated the 24th September, 1976 of the Andhra Pradesh High Court in Writ Petition Nos.
The first question is whether on a true companystruction of the Notification No.
The appellant carries on business as manufacturers of diverse kinds of fertilizers at the factory situated at Vishakhapatnam.
Against the decision and judgment of the High Court disallowing these claims these appeals with special leave granted by this Court have been filed by the appellant.
AND Civil Appeal Nos.683 686/77, 1062 1064 of 1977, 885 to 890 of 1978.
The manufacturing process of the said fertiliser companysists of treating Rock Phosphate with Sulfuric Acid which produces Phosphoric Acid.
Two questions fall for determination in these appeals.
Thereafter the said mixed fertiliser companyes into existence.
To this slurry, Muriatic of Potash is added.
2898, 2940, 2946, 2948, 2899, 2900, 2904, 2901, 2902, 2903, 2941, 2947 and 2961 of 1976.
23/70 dated 1.3.1970 issued by the Government of India, the appellant is entitled to claim exemption from the imposition of excise duty on fertilizers which, according to the appellant, are mixed fertilizers manufactured by the appellant.
It may be numbered that some of these appeals are companycerned with the first question, namely the exemption under the Notification No.
In the absence of any such agreement the appellant would have been obliged to carry on the activity of organising the sales of its products on its own.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
This companymission is the remuneration paid by the appellant to the selling agents for discharging the obligation of the selling agents under the agreement of selling the fertilisers.
Ms. A. Subhashini and Girish Chandra for the Respondent.
1400 to 1403 of 1976.
Ravinder Narain, O.C. Mathur, Talat Ansari, Kamal Mehta and Ms. Rainu Wallia for the Appellant.
The appellant companysidered that it would be advisable to entrust the sale of its products to organisations with experience in the sale of fertilizers, instead of the appellant itself organising sales of the fertilizers manufactured.
As all the writ petitions were dismissed by one companymon judgment delivered by the High Court, we propose to dispose of all these matters by this judgment.
1373 to 1376 of 1976.
The Judgment of the Court was delivered by AMARENDRA NATH SEN, J. These appeals and also the Special Leave Petitions arise out Writ Petitions filed by the Appellant as the petitioners in the High Court of Judicature, Andhra Pradesh at Hyderabad.
The Central Government issued a numberification bearing No.
Under the terms of the agreements the selling agents were appointed by the appellant and the selling agents were entrusted with the task of arranging the sale of the fertilisers for and on behalf of the appellant in companysideration of receiving a companymission of 3 1/2 calculated on the net realisable value, i.e., upon the gross sales realisation less excise duty and sales tax, freight expenses and discount and rebate.
The High Court disposed of all the writ petitions by one companymon judgment.
Same questions are involved in the special leave petitions.
23/70 dated 1.3.1970, and in the remaining appeals the question of exclusion of the companymission paid to the selling agent is involved.
Aggrieved by the decisions of the authorities companycerned, the appellant filed writ petitions in the High Court.
This Court granted special leave to the appellant to file appeals against the dismissal of the writ petitions by the High Court and also directed some of the Special Leave Petitions to be heard along with the appeals.
25/70 dated 1.3.70 which reads as follows In exercise of the powers companyferred by sub rule 1 of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts mixed fertilizers, falling under item No.
14HH of the First Schedule to the Central Excises and Salt Act, 1944 1 of 1944 manufactured with the aid of power, from two or more fertilizers on all of which the appropriate amount of the duty of excise or, as the case may be, the additional duty under section 2 A of the Indian Tariff Act, 1943 32 of 1934 , has already been paid, from the whole of the duty of excise leviable thereon.
Explanation For the purpose of this numberification, the term mixed fertilizers means mixtures of fertilizers companytaining more than one nutrient nitrogen, phosphate or potash and does number include single nutrient fertilizers like super phosphate manufactured from rock phosphate.
