2001 (7) TMI 153 - HC - Central Excise

Summary

Issues involved: Determination of taxability of "Sikekayi powder" under the Central Excise Tariff Act and comparison with a decision under the Sales Tax Act.

Judgment Summary:

1. The learned Single Judge, in line with a previous judgment, ruled that "Sikekayi powder" is a taxable commodity under the Central Excise Tariff Act as it involves a manufacturing process, making it distinct from the raw material. The Division Bench confirmed this decision, categorizing the powder under the item "others" in Chapter 33.05.

2. The appellant argued that the Division Bench mistakenly referred to the Customs Tariff instead of the Central Excise Tariff, but the categorization under the residuary item 'others' in Chapter 33 was deemed appropriate due to the manufacturing process involved in converting Shikakai into powder.

3. A reference was made to an unreported decision under the Sales Tax Act, where the Tribunal's opinion that 'Seegekai Powder' is different from 'Seegekai' was overturned. However, the specific provision of the Sales Tax Act considered was not mentioned, and the aspect of manufacturing was not thoroughly examined. The court preferred to follow the more recent and direct decision on the taxability of similar products.

4. Ultimately, the writ appeal was dismissed, upholding the taxability of "Sikekayi powder" under the Central Excise Tariff Act based on the manufacturing process involved, despite the contrasting view in the Sales Tax Act decision.