1996 (8) TMI 326 - AT - Central Excise

Summary

Issues:
1. Challenge to Order-in-Original before CEGAT
2. Alleged contravention of Central Excise Rules
3. Dismissal of appeal by Tribunal and High Court direction
4. Dispute on excisability of parts before Tribunal
5. Application for reference under Section 35G(1) of the Act
6. Filing of Excise Reference Application No. 103/88 before High Court

Analysis:

1. The case involved a challenge to Order-in-Original No. 9/79 passed by the Collector of Central Excise, Jaipur, where M/s. Hira Cold Storage and Ice Factory, Jaipur, and M/s. Rajasthan Farms and Food Products were held to have contravened Central Excise Rules, leading to penalties and confiscation of goods. The appeal before the Tribunal was dismissed, prompting an application before the High Court of Rajasthan, which directed the Tribunal to refer the case to the Supreme Court within 90 days.

2. The dispute centered around the fabrication of bunker coils, cooling coils, and condenser at the site, with allegations of manufacturing excisable goods without the necessary license and clearance without payment of central excise duty. The Collector's decision was challenged on various grounds, including the excisability of the parts, citing conflicting judgments from different High Courts.

3. The Tribunal dismissed the application for reference under Section 35G(1) of the Act, stating that the dispute related to classification and did not warrant a reference to the High Court. However, the High Court of Rajasthan directed the Tribunal to refer the questions of law arising from the appeal dismissal to the Supreme Court due to a divergence of opinions among High Courts.

4. The key legal questions for consideration were whether the fabrication of bunker coils, cooling coils, and condenser at the site constituted "manufacture" under the Central Excises and Salt Act, 1944, and whether these articles were excisable goods. Additionally, the issue of whether such fabrication attracted the relevant sub-item of the Central Excise Tariff was also raised for determination. The High Court's direction aimed to resolve these legal ambiguities through a reference to the Supreme Court for clarification.