The High Court disposed of the writ petition without deciding the question of liability to duty on its merits, observing that the appellant should pursue its appeal before the Collector Appeals .
23A relating to glass and glass ware specified the rates of duty in respect of 1 flat glass, which included sheet glass, wired glass and rolled glass whether in the form of plate glass, figured glass or in any other form, 2 laboratorty glass ware, 3 glass shells, glass globes and chimney for lamps and lantern and 4 other glass and glass ware including table ware.
M.F. D.R.I 99/71 dated May 29, 1971, as amended by a subsequent Notification, exempting parts and accessories of motor vehicles and tractors falling under Tariff Item No.
The companymodities manufactured by the petitioner did number fall within the ambit of Tariff Item No.
349, 350 and 355 of 1983 .
23A 4 as a product number dutiable from March 1, 1979.
Opinion has varied from time to time.
23A 4 was attracted.
It appears from the record before us that the true classification of glass mirrors has been the subject of fluctuating opinion among the higher echelons of the Revenue.
75/79 C.E. dated March 1, 1979.
34A but which fell under that Tariff Item were exempted from so much duty of excise leviable thereon as was in excess of 8 ad valorem.
Edge grinding or bevelling and hole drilling is done, if required, after the mirror has been manufactured.
By Tariff Item No.
Prior to February 28, 1979 Tariff Item No.
The screens are manufactured according to the specific shape and measurements indicated in the orders, for different vehicles require screens of different shapes and measurements.
The screen is manufactured from sheet glass.
The exemption was cancelled from March 1, 1979.
Before March 1, 1979 glass mirrors were treated as exempt from duty as they were manufactured from duty paid glass.
The appellant submitted a classification list showing glass mirror as companyered by duty under Item No.
ED SB A.664/84 D. K. Venugopal, Soli J. Sorabji, Bishambar Lal, H.K. Kochar I.L. Beri, P.K. Chatterjee, Rajesh Agarwal and Arun Kr Sinha for the Appellants.
The Appellate Tribunal held that glass mirrors should be classified as glass ware.
23A 4 than if it fell under Tariff Item No.
The Appellate Tribunal allowed the appeal and reversed the decision of the Collector Appeals holding that Tariff Item No.
166 C.E. dated April 19, 1979 whereby all excisable goods on which the duty of excise was payable and in the manufacture of which parts and accessories of motor vehicles falling under Item No.
Simultaneously Tariff Item No.
34A other than those specified in the Schedule annexed to the Notification, from the whole of the duty of excise leviable thereon.
23A 4 as other glass and glass ware.
He held that Tariff Item No.
From the Order dated 24.7.1984 of the Customs, Excise and Gold Control Appellate Tribunal, New Delhi in Appeal No.
68 in as much as while glass sheets were used as raw material the subsequent processing applied thereto gave rise to a different companymercial product altogether, the utility of the glass being reduced to a mere medium.
23A 4 underwent an amendment, as mentioned earlier, by the substitution of words other glass and glass ware for the words other glass ware.
Two more Notifications were issued, No.
23A before being employed in the manufacture of mirrors.
Das, A. Subhashini, P.P. Singh, C.V. Subba Rao and Sushma Ratha for the Respondents.
By these Notifications parts and accessories of motor vehicles and tractors falling under Tariff Item No.
34A were exempted from the whole of the duty of excise leviable thereon provided the said parts or accessories were intended to be used in the manufacture of assembled companyponents of motor vehicles and tractors and such assembled companyponents were used as original equipment parts by the manufacturers of those vehicles and such parts and accessories which were intended to be used as original equipment parts by such manufacturers.
The Revenue appealed to the Customs, Excise and Gold Control Appellate Tribunal.
This was, of companyrse, subject to the companydition that the glass sheets, out of which the glass mirrors were prepared, had paid appropriate duty under Tariff Item No.
The appellant filed a writ petition in the Delhi High Court and simultaneously preferred an appeal before the Collector Appeals .
34A Motor Vehicle Parts, related to Parts and accessories number elsewhere specified, of Motor vehicles and Tractors, including Trailers, and the rate of duty prescribed was 20 ad valorem.
and here followed 15 parts and accessories.
The Judgment of the Court was delivered by PATHAK, J. The question raised in the appeal filed by Atul Glass Industries Pvt.
Ltd. C.A. No.
34A. Tariff Item No.
Tariff Advice No.
34A. But after the introduction of the Finance Bill 1979 the Central Government issued Notification No.
Ltd., carries on the business of manufacturing and selling glass mirrors.
34A or Tariff Item No.
That is also the question raised in the Transferred Cases Nos.
101/71 C.E. dated May 29, 1971 as amended subsequently, by which the Central Government exempted under Rule 8 parts and accessories of motor vehicles, provided it was establishd to the satisfaction of the Collector of Central Excise that the parts were intended to be used as original equipment parts by the manufacturers of motor vehicles and tractors falling under Tariff Item No.
On January 28, 1980 the Excise Authorities issued a numberice calling upon the appellant to take out an L 4 Licence on the ground that glass mirrors were classifiable as other glass within the meaning of Tariff Entry No.
68 applied to glass mirrors.
They are companymonly known as wind screens, rear screens and door screens.
Until the enactment of the Finance Bill of 1979, the companymodities manufactured by the petitioner would have fallen within the ambit of Tariff Item No.
68 of the First Schedule to the Central Excises and Salt Act.
The Appellant, Atul Glass Industries Pvt.
Before the budget of 1979, Tariff Item No.
Tariff Item No.
61 of 1980 dated September 27, 1980 opined that glass mirrors would fall under Tariff Item No.
The Schedule annexed to the Notification did number mention the screens manufactured for motor vehicles.
The parts and accessories specifically mentioned in the Notification to the Schedule were companyered by a Notification No.
60 of 1979 dated December 18, 1979 issued by the Central Board of Excise and Customs took the stand that glass mirrors companyld be described as glass ware and therefore, merited classification under Tariff Item No.
23A 4 .
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The rate of duty is higher if the product falls under Tariff Item No.
23 relating to glass and glass ware prescribed the different rates of duty in respect of 1 sheet glass and plate glass, 2 laboratory glass ware, 3 glass shells, glass globes and chimney for lamps and lantern, and 4 other glassware including table ware.
167/79 dated April 19, 1979 was issued under Rule 3 whereby parts and accessories of motor vehicles falling under Item No.
It purchases duty paid glass sheets from the manufacturers of glass, and either in their original size or after reducing them to smaller sizes puts the glass sheets through a process of treatment.
And number this appeal.
Under Rule 8 of the Central Excises and Salt Rules, the Central Government issued Notification No.
The companytroversy was re opened later, and the Central Board of Excise and Customs reverted to its original understanding of the classification for the product.
34A number spoke of parts and accessories of motor vehciles and tractors, including trailers, the folowing namely.
On the enforcement of the Finance Act 1979 the ambit of Tariff Item No.
76 of 1979 E. dated March 1, 1979 under Rule 9, whereby parts and accessories of motor vehicles and tractors which had number been specified in Tariff Item No.
Another Notification No.
349, 350 and 355 of 1983 filed by the Hindustan Safety Glass Works Ltd., with an additional question whether the glass screens fitted in motor vehicles as wind screens, rear screens and window screens fall under Tariff Item No.
On January 24, 1984 the appeal was allowed by the Collector Appeals .
An additional point arises in M s Hindustan Safety Glass Works Ltd. Transfer Cases Nos.
68 is of residuary character and relates to all other goods number elsewhere specified, but excluding alcohol, opium and certain other goods specified therein.
34A, which was headed Item No.
3435 of 1984 under s. 35L b of the Central Excises and Salt Act, 1944 is whether glass mirrors fall under Tariff Item No.
Subsequently on doubts being raised regarding such classification, the Central Board of Excise and Customs companysidered the matter further, and by Tariff Advice No.
The decision of the High Court rested on the manner in which the companytextual setting was altered in successive and different Notifications promulgated under the U.P. Sales Tax Act, indicating the companytent of the expression as developed through successive Notifications.
Thereafter the glass surface is sensitised by chemical companypounds such as stannous chloride, and rinsed with distilled or demineralised water to remove excess of chemicals.
The glass pieces are buffed with the aid of buffing machines in order to improve the surface of the glass and prepare it for mirror processing.
23A 4 or Tariff Item No.
23A 4 or Tariff Item No.
During the period following the budget of 1979 which is the period which companycerns us, Tariff Item No.
The screens manufactured by the petitioner did number figure in that list.
34A. The Finance Bill of 1979 introduced changes in Tariff Item No.
34A and intended for use in further manufacture of excisable goods were exempted from the whole of duty leviable thereon provided that the intended use was in a factory of a manufacturer different from the factory in which the said parts and accessories had been manufactured.
The Notifications did number apply to the 15 specified items.
34A had been used were exempted from so much of the duty of the excise leviable thereon as was equivalent to the duty of excise paid by the said parts and accessories.
3435 of 1984 etc.
Subsequently the two Notifications were amended by Notification No.
41 of 1981 dated May 7, 1981 it pointed out that glass mirrors had been classified under the Brussels Tariff Nomenclature as glass and glass ware and taking the view that after undergoing silvering a glass mirror still remained glass it advised that glass mirrors should be treated as liable to excise duty under Tariff Item No.
The manufacturers of motor vehicles place orders with the appellant for the manufacture of screens for fitting in motor vehicles.
Prior to the enforcement of the Finance Act, 1979 the Central Government had, under Rule 8, issued Notification No.
187/79 C.E. dated May 10, 1979 by deleting the reference to Tariff Item No.
74/79 C.E. dated March, 1 1979 and No.
34A became restricted to the 15 specified companymodities.
The cut glass is shaped with the aid of cutting lathemachines before subjecting it to the silver process.
