The High Court of Calcutta however, took a different view and accepted the stand of the Department that the expression value occurring in the Notification dated July 26, 1967 is number the deemed value calculated according to the provisions of Section 4 of the Act but is the real and actual value of the goods after payment of duty.
Later on they changed their stand and informed the companypany that the articles of footwear manufactured by it, of which the wholesale price was Rs.
Accordingly a mandamus refund of the duty illegally companylected from the Company was issued by the Patna High Court.
From the judgment and order dated 24.
The Judgment of the Court was delivered by BALAKRISHNA ERADI, J. In these three appeals the parties involved are the same and the point arising for determination is identical.
For the purposes of the said business, the companypany has three manufacturing establishments namely, a factory a Batanagar in the district of 24 Parganas, West Bengal, another factory at Batanagar near Patna in the State of Bihar and a third manufacturing establishment at Faridabad in the State of Haryana.
The companypany is engaged in the business of manufacturing and dealing in articles of footwear and accessories.
From the Judgment and Order dated 29.7.
5.00 per pair, from the whole of the duty of excise leviable thereon.
By a Notification G. S. R. 360, dated February 28, 1965 issued by the Central Government in exercise of the powers companyferred by Sub rule 1 of Rule 8 of the Central Excise Rules, 1944 for short the Rules footwear and parts thereof were companypletely exempted from levy of excise duty.
30, Shakespeare Sarani, Calcutta 17.
1971 of the Patna High Court in C.W No.
1971 of the Calcutta High Court in F.M.A. No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1970 of the Punjab and Haryana High Court in C.W. No.
6.25 per pair were chargeable to excise duty since while companyputing the value of the articles for the purpose of judging the applicability of the exemption, the duty element of the companyt structure companyld number be deducted from the whole sale price and on such calculation the value of such footwear would exceed Rs 5 per pair.
By virtue of Entry 36 of the First Schedule in the Central Excises and Salt Act, 1944 hereinafter called the Act , footwear and parts thereof in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, is chargeable to excise duty, the rate of duty being ten per cent ad valorem in respect of footwear and fifteen per cent ad valorem in respect of parts of footwear.
The companypany took up the matter with the respective Collectors of Central Excise in West Bengal, Bihar and Haryana but without success In the meantime the Department companytinued to levy and companylected from the companypany substantial amounts by way of duty on such articles of footwear.
1470 of 1972.
1469 N of 1972.
353 N of 1971.
Thereafter followed yet another Notification dated July 24, 1967 which was in the following terms NOTIFICATION CENTRAL EXCISES S. R. In exercises of the powers companyferred by Sub rule 1 of rule g of the Central Excise Rule, 1944 the Central Government hereby exempts, with effect from the 26th may, 1967, footwear falling under Item No.
36 of the First Schedule to the Central Excises and Salt Act, 1944 I of 1944 of which the value does number exceed Rs.
From the judgment and order dated 28.
201 of 1971 Dr. Y. S. Chitale, Anil Sharma and Praveen Kumar for the Appellants.
1330/10 .
However, shortly thereafter, by other Notification dated May 26, 1967, the exemption from duty granted in respect of footwear and parts thereof by the preceding Notification dated February 28, 1965 was withdrawn.
Civil Appeal No.
171/67 The sole question raised in these appeals Concerns the interpretation of this Notification.
During the year 1967 and 1968, the companypany was manufacturing certain items of footwear of which the wholesale price was RS 6.25 per pair The companypany companytended that since the assess able value of such items of footwear calculated in accordance with the provisions of Section 4 of the Act, as they stood at the relevant time was only Rs 4.94 and hence less than Rs 5 per pair, such items qualified for exemption from duty under the Notification dated July 26,1967.
Hence they were heard together and are being disposed of by this judgment.
The Bata Shoe Company Ltd. hereinafter called the companypany is an existing companypany within the meaning of The Companies Act, 1956 with its head office at No.
S. Gujaral, V. K. Punjwani, C. V. Subba Rao and Ms. Subhashini for the Respondents.
2331/70.
AND Civil Appeal No.
The High Court of Punjab and Haryana was moved by the companypany only after short interval of time during which it had been pursuing its remedies before the highest Departmental a Authorities as well as before the Patna and Calcutta High Courts.
Though originally the Department appears to have been inclined to accept the companyrectness of the stand taken by the companypany.
That is how these appeals have companye to be filed in this Court.
Similar certificates were granted to the companypany and to the Union of India respectively by the High Courts of Calcutta and Patna.
