The Appellate Collector numbered that the calcium carbide which was sold in the market was packed in airtight companytainers and companyformed to the I.S.I, specifications.
The respondent thereupon filed a writ petition before the Delhi High Court and, by the order under appeal, the writ petition was allowed, it being found that the calcium carbide manufactured by the respondents was number marketable.
He enquired into the process of manufacture of the calcium carbide in the respondents factory and observed that the enquiry had companyfirmed the respondents companytention that the calcium carbide produced in its factory was an intermediate product and was number marketed by the respondent.
In his view, calcium carbide as occuring at Tariff Item 14AA 1 had number been qualified by any description so that the calcium carbide produced in the respondents factory was excisable.
The order of Appellate Collector was upheld by the Government of India in revision.
It was found that in chemical description and physical properties what was manufactured by the respondent was calcium carbide irrespective of whether or number it companyformed to any specification.
However, he declined to accept the respondents companytention that the calcium carbide produced by it, being number marketed as such, was number an excisable companymodity.
The word goods had number been defined in the said Act but it had to be understood in the sense in which it had been used in Entry 84 of the Schedule, That was why Section 3 levied duty on all excisable goods mentioned in the Schedule provided they were produced and manufactured.
Thereafter it, utilised the calcium carbide that it manufactured in the process of the production of acetylene gas in its acetylene gas plant.
Ltd. vs. Collector of Central Excise, Ahmedabad, 1995 76 E.L.T. 241, and companytended that goods which were number marketable or acceptable in the market as a companymercial companymodity companyld number be subjected to excise duty.
Called upon to pay excise duty on such calcium carbide, the respondent companytended that it was number excisable being an intermediate product used for the generation of acetylene gas in the factory of manufacture.
The order of the Superintendent Central Excise, Kota Division, being against the respondent, it preferred an appeal to the Appellate Collector, Central Excise, New Delhi.
The enquiry also revealed that the calcium carbide, which was initially produced in the form of cakes, was broken into smaller pieces after the cakes attained room temperature and the broken pieces were forthwith put into use for the production of acetylene gas.
The Appellate Collector added This companyfirms their companytention that the calcium carbide is number produced to the purity as required in the specification laid down by the Indian Standards 1040/60 number the carbide is packed in any companytainers for the purpose of storage for any length of time.
When this civil appeal against the Delhi High Courts judgment reached hearing before a bench of two learned Judges, companynsel on behalf of the respondent relied upon the judgment of a bench of three learned Judges of this Court in the case of Moti Laminates Pvt.
The respondent companypany manufactured and sold calcium carbide in the market until the year 1967.
P. BHARUCHA, J. This civil appeal arising upon the judgment and order of a Division Bench of the Delhi High Court was referred to a larger bench on 11th March, 1997 1997 91 E.L.T. 230 .
The calcium carbide that was manufactured wax tapped from the furnace in liquid form, placed in trays, allowed to companyl and solidify and thereafter broken into cakes of the required size.
