1989 (2) TMI 247 - AT - Central Excise

Issues Involved:
1. Whether the Applicant Board is State within the meaning of Article 12 of the Constitution of India for various purposes.
2. Interpretation of provisions of the Electricity Supply Act, 1948.
3. Entitlement to exemption from excise duty under Notification No. 57 of 1975.
4. Application of provisions of the Excise Act and Rules in light of Article 12 of the Constitution.
5. Jurisdiction of the Assistant Collector of Central Excise, Ambala.
6. Jurisdiction of the Appellate Collector of Central Excise, Delhi.
7. Double taxation on assembled transformers.
8. Entitlement to exemption under Notification No. 118 of 1975.
9. Definition of 'factory' in context of the Applicant Board.
10. Clearance of transformers under the Central Excise Act.

Detailed Analysis:

1. Whether the Applicant Board is State within the meaning of Article 12 of the Constitution of India for various purposes:
The Tribunal examined whether the Applicant Board is considered a 'State' under Article 12 of the Constitution only for constitutional purposes or for all laws. This issue pertains to the interpretation of the Constitution and its applicability to the Applicant Board.

2. Interpretation of provisions of the Electricity Supply Act, 1948:
The Tribunal considered whether the Applicant Board forms a part and parcel of the State of Haryana under Sections 5, 9, 60, 61, 62, and 78A of the Electricity Supply Act, 1948. This involves a detailed interpretation of the statutory provisions and their implications on the status of the Board.

3. Entitlement to exemption from excise duty under Notification No. 57 of 1975:
The Tribunal evaluated whether the Applicant Board is entitled to exemption from excise duty based on its status as a 'State' under Article 12. This involves the interpretation of the notification and its applicability to the Board.

4. Application of provisions of the Excise Act and Rules in light of Article 12 of the Constitution:
The Tribunal considered whether the provisions of the Excise Act and Rules should be applied subject to the provisions of Article 12, accepting the Applicant Board as a 'State.' This involves the interplay between constitutional provisions and statutory laws.

5. Jurisdiction of the Assistant Collector of Central Excise, Ambala:
The Tribunal addressed whether the Assistant Collector had jurisdiction to issue a show cause notice without the direction or application of mind by the Collector of Central Excise, Delhi. This involves procedural aspects and jurisdictional authority under the Excise Act.

6. Jurisdiction of the Appellate Collector of Central Excise, Delhi:
The Tribunal examined whether the Appellate Collector had jurisdiction to adjudicate the show cause notice without issuing it himself or applying his mind before its issue. This is closely related to the procedural and jurisdictional issues under the Excise Act.

7. Double taxation on assembled transformers:
The Tribunal considered whether imposing excise duty on assembled transformers constitutes double taxation when excise duty has already been paid on each component. This involves the principles of taxation and manufacturing under the Excise Act.

8. Entitlement to exemption under Notification No. 118 of 1975:
The Tribunal evaluated whether the Applicant Board is entitled to exemption from excise duty for goods manufactured in its factory under Notification No. 118 of 1975. This involves the interpretation of the notification and its applicability to the Board's operations.

9. Definition of 'factory' in context of the Applicant Board:
The Tribunal considered whether the term 'factory' includes the Applicant Board's total electrical system, including transmission lines. This involves the definition and scope of 'factory' under the Excise Act and its applicability to the Board's infrastructure.

10. Clearance of transformers under the Central Excise Act:
The Tribunal examined whether moving an assembled transformer within the Applicant Board's system constitutes 'clearance' under the Central Excise Act, and whether the transmission system forms part of the factory. This involves the interpretation of 'clearance' and the scope of factory operations under the Excise Act.

Conclusion:
The Tribunal concluded that the proposed questions of law relate to the determination of questions having a relation to the rate of duty of excise and, therefore, are not referable to the High Court under Section 35G of the Central Excises and Salt Act, 1944. Consequently, the Reference Application was rejected as not maintainable. The Tribunal emphasized that the appeal was heard by a Special Bench constituted for such matters, and the applicants, having submitted to the jurisdiction of the Special Bench, cannot now contest the nature of the questions involved.

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