Of organic surface active agents from another companypany called The Industrial General Products Private Limited.
Hence, the purchases of the surface active agents effected by the appellant from M s. Industrial General Products Private Limited have to be treated as purchases made from the open market.
Accordingly, we allow this appeal, set aside the orders passed by the Government of India, the Appellate Collector, Bombay and the Assistant Collector of Central Excise, Bombay, and declare that the appellant Company is entitled to the benefit of the exemption granted by the Notification dated January 20, 1968 in respect of the emulsifiers, wetting out agents, softners etc.,
Emulsifiers, wetting out If in respect of surface agents, softness and active agents used in the other like preparations manufacture of such intended for use in any emulsifiers, wetting out industrial process.
It is against this order of the Government of India that the appellant has companye up to this Court with this appeal.
1, Bombay Division V, the appellant Company was directed to show cause why an amount of Rs.
A Revision Petition filed by the appellant before the Government of India was rejected by the order Exh.
1,21,709.57 should number be recovered from the Company by way of excise duty in respect of the period August 1973 to February 1974 on the ground that the said amount represented escaped duty in respect of the emulsifiers/ wetting out agents manufactured by the petitioner Company during the aforesaid period.
as exempt from levy of duty by virtue of the Notification dated January 20, 1968.
Description Conditions No.
1 2 3 1.
The said order was companyfirmed by the Appellate Collector of Central Excise, Bombay, before whom the matter was carried in appeal by the present appellant.
TABLE Sl.
But, subsequently, by a numberice dated August 6, 1974, issued by the Superintendent of Central Excise, Inspection Group No.
It is companymon ground that the organic surface active agents A used by the appellant as raw material for the manufacture of emulsifiers wetting out agents were purchased by it.
He took the view that, in order to attract the exemption provided for in the aforesaid Notification, duty should actually have been paid in respect of the surface active agents used as raw material and since the appellant had purchased the raw material from a manufacturing unit which was exempt from the levy of excise duty for the reason that the manufacture was carried out by it without the aid of power, the companyditions prescribed in the Notification were number fulfilled.
From the judgment and order dated the 13th September, 1978 of the Central Govt.,
manufactured by the Company for use during the relevant period August 1973 to February 1974 .
The aforesaid organic surface active agents sold to the appellant by the Industrial General Products Private Limited had number been subjected to the levy of excise duty inasmuch as the said supplier Company was eligible for exemption from payment of excise duty on account of the fact that the goods were manufactured by it without the aid of power.
220 I of 1978.
Emulsifiers wetting out agents, etc.
The respondent shall pay companyts to the appellant Company in this appeal.This companytention was rejected by the companycerned Assistant Collector.
The sales by the said Company were number to a limited class only.
Ministry of Finance Department of Revenue, New Delhi in order No.
The denial to the appellant of the benefit of the exemption provided for by the Notification was, therefore, clearly illegal.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
agents, softners and other like preparations the appropriate amount of the duty of excise or the additional duty under section 2A of the Indian Tariff Act 1934 32 of 1934 , has already been paid or where such surface active agents are purchased from the open market on or after the 20th day of January, 1968.
While upholding the view taken by the Assistant Collector that the benefit of the exemption granted by the Notification would be available only in cases where the raw material, namely, the surface active agents had been subjected to duty at the primary stage, the Appellate Collector went further and held that the purchase of the aforesaid raw material effected by the appellant from M s. Industrial General Products Private Limited companyld number be regarded as purchased from the open market and that for this additional reason also, the appellant was ineligible to claim the benefit of the exemption.
For use as raw material for the manufacture of the emulsifiers wetting out agents, the appellant Company had purchased a total quantity of 1,64,500 kgs.
The Central Excise authorities originally treated the manufactured product, namely the emulsifiers etc.
intended for use in any industrial process were exempted from the levy of duty under Entry 15AA of the First Schedule to the Act, subject to certain companyditions, by a Notification dated January 20, 1968 issued by the Government of India.
subsequent to the 20th day of January 1968.
J. Taraporavala, J. B. Dadachanji and Shri Narain for the appellants.
819 of 1978.
Amongst the process chemicals so manufactured by them are substances known as emulsifiers and wetting out agents.
C. Talukdar and R.N. Poddar for the Respondent.
These products fall within the scope of Tariff Item 15AA of the First Schedule to the Act, which reads Organic Surface Active Agents other than soap Surface Active preparations and washing preparations, whether or number companytaining soap.
The appellant Company which has its factories at Sion East and Andheri East in Bombay is engaged in the manufacture of various process chemicals required for the Textile industry.
4/68 CE dated January 20, 1968.
In reply to the said numberice, the appellant Company objected to the said demand companytending that it was entitled to the benefit of exemption from levy of duty in respect of the manufactured products under the Notification dated January 20, 1968 inasmuch as surface active agents used in the manufacture of the emulsifiers wetting out agents had been purchased by the appellant from the open market after the 20th day of January 1968.
The Judgment of the Court was delivered by BALAKRISHNA ERADI, J. This appeal by special leave is directed against an order dated August 3, 1978 passed by the Government of India under Section 16 of the Central Excise and Salt Act, 1944 hereinafter referred to as the Act , rejecting a Revision Petition filed by the present appellant and companyfirming the view taken by the Appellate Collector of Excise, Bombay, that the appellant herein is number entitled to the benefit of the exemption from duty of excise companyferred by a Notification No.
