1983 (5) TMI 34 - HC - Central Excise

Intermediate products Removal of goods is not necessary for levying Excise duty Writ jurisdiction Wet Dextrose

Summary

Issues:
Challenge to validity of excise duty on 'Wet dextrose' under Tariff Item No. 1E.

Detailed Analysis:

1. The petitioner challenged the excise duty on 'Wet dextrose' under Tariff Item No. 1E. The petitioner manufactures 'Dextrose Monohydrate' and 'Sorbitol'. The Assistant Collector classified 'Wet dextrose' under Tariff Entry 1E, leading to the dispute.

2. The Collector of Central Excise (Appeals) upheld the classification, and the Central Government dismissed the revision petition. The Central Government considered 'Wet dextrose' as falling under Tariff Item 1E, similar to 'Dextrose Monohydrate', despite the petitioner's contentions.

3. The Central Government's decision was based on the belief that 'Wet dextrose' could be transported and had the same composition as 'Dextrose Monohydrate'. The petitioner argued that 'Wet dextrose' was not a finished product and was not being sold or removed from the manufacturing site.

4. The High Court analyzed the manufacturing process and technical literature to determine the classification. The Court noted that 'Wet dextrose' was distinct from 'Dextrose Monohydrate' and required further processing to become a final product.

5. The Court highlighted that the Central Government misinterpreted the petitioner's submissions regarding the saleability of 'Wet dextrose'. The Court emphasized that without additional processing, 'Wet dextrose' did not qualify as a product under Tariff Item 1E.

6. The Court directed that the Central Government's order be set aside, and the issue of classification be reconsidered by the competent authorities under the Act. The revision petition was to be transferred to the Excise, Customs, and Gold (Control) Appellate Tribunal for a fresh decision.

7. The Court emphasized the need for a thorough examination of technical materials and literature by the authorities to determine the nature and classification of 'Wet dextrose'. The decision aimed at ensuring a just and proper resolution of the dispute.

8. Ultimately, the Court quashed the Central Government's order, reviving the revision petition for further review by the Tribunal. Each party was to bear its own costs in the matter.