1962 (10) TMI 2 - HC - Central Excise

Summary

Issues:
1. Challenge to levy made by the First Respondent
2. Challenge to order of the Second Respondent in appeal
3. Determination of wholesale price for excise duty on Electric Batteries

Detailed Analysis:
1. The petitioner, a private limited company manufacturing Electric Batteries, challenged the levy made by the First Respondent on 16-11-1959 and the order of the Second Respondent in appeal on 14-10-1960 under Articles 226 and 227 of the Constitution of India, seeking a writ of Certiorari or any other appropriate writ to quash the same.
2. The petitioner's factory and office are located just outside the limits of Bangalore City. The company manufactures Electric Storage Batteries under trade marks "AMCO", "OAKES", and "SPEED", distributed through various channels with specific distributors for different zones in India. The wholesale prices charged to distributors were alleged to be the same.
3. The Central Excise authorities disputed the wholesale price declared by the petitioner, claiming it was lower than the prevailing market price in Bangalore. The authorities relied on prices charged by distributors like Addison & Co. Ltd. and George Oakes Ltd. in Bangalore to determine the wholesale cash price for levying excise duty, without considering overhead charges, incidental expenses, or discounts. The judgment emphasized the need to determine the value based on the prevailing wholesale cash price at the factory location.

The judgment by K.S. Hegde, J., held that the authorities did not consider all relevant factors in determining the wholesale cash price for excise duty on the Batteries. The petitioner's contention regarding non-uniform application of rules by different Collectors under Article 14 of the Constitution was dismissed. A Writ of Certiorari was issued to quash the impugned levy, allowing for a fresh assessment in accordance with law. No costs were awarded in this case.