1984 (10) TMI 45 - HC - Central Excise

Summary

Issues:
1. Classification of zinc bars as excisable goods under the Central Excises and Salt Act, 1944.
2. Confiscation and penalty imposition for manufacturing zinc strips without a Central Excise license.
3. Whether zinc bars obtained during the manufacturing process constitute a new or finished product subject to duty.

Analysis:
1. The petitioner, a limited company manufacturing dry battery cells, imported zinc ingots for production. The Central Excise authorities sought to levy duty on zinc bars, treating them as 'zinc strips' under the tariff item. The petitioner argued that the bars obtained through the manufacturing process are not excisable goods and should not be subjected to duty. However, the Deputy Collector, Central Excise, Hyderabad, upheld the duty imposition, which was confirmed on appeal by the Appellate Collector and the Government of India.

2. The Central Excise authorities relied on a decision of the Allahabad High Court in a similar case to negate the petitioner's contentions. The High Court, after perusing the Allahabad High Court decision, agreed with the reasoning and conclusion of the judgment. The High Court dismissed the writ petition without costs, noting that no specific arguments were presented to warrant a different view from the Allahabad High Court decision.

3. The petitioner's senior advocate requested leave to appeal to the Supreme Court under Article 133 of the Constitution of India. The High Court, considering that the Supreme Court had granted special leave against the Allahabad High Court decision, inclined to grant a certificate under Article 133. Additionally, the advocate requested a stay on duty collection for two months to enable the petitioner to approach the Supreme Court. The High Court directed that the duty payable by the petitioner would not be collected for two months following the dismissal of the writ petition.