1975 (9) TMI 54 - HC - Central Excise

Summary

Issues: Interpretation of excise duty provisions for insulated cables with specific sectional area.

The judgment pertains to a public limited company manufacturing cables, which are subject to excise duty under Item 33B of the Central Excises and Salt Act, 1944. The issue at hand is the correct rate of duty applicable to insulated aluminum cables with a sectional area of 2.545 square millimeters. The petitioner argued that since the sectional area exceeded 2.5 square millimeters, the duty should be levied at 5% instead of 15% as determined by the authorities. The respondents contended that 2.545 square millimeters should be rounded off to 2.5 square millimeters, justifying the higher duty rate. The court rejected this argument, emphasizing that the fiscal statute clearly delineates the duty rates based on the sectional area of the cables. The statute mandates a higher duty for areas not exceeding 2.5 square millimeters and a lower duty for areas exceeding this threshold. As the sectional area in question was 2.545 square millimeters, it logically exceeded 2.5 square millimeters, warranting the lower duty rate of 5%. The court deemed the authorities' interpretation as erroneous and directed the assessment at the lower rate of 5%, thereby allowing the original petition with costs and quashing the previous orders. The judgment highlights the importance of strict adherence to statutory provisions in determining excise duty rates, emphasizing the need for accurate interpretation without resorting to rounding off in such cases.