9911796707
TMI Blog2004 (4) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... lture use. Thus, we are of the view that when the same product is being manufactured by three different companies--M/s. High Power Engineering Company Private Limited, Satara, Maharashtra, M/s. Greaves Limited, Chennai, Tamil Nadu and the petitioner at Valsad, Gujarat, the interest of justice demand that the respondent-authorities are required to give similar treatment to the product being manufactured by the petitioner-Company. Accordingly, the respondents are restrained from recovering excise duty from the petitioner Company on Agricultural Knapsack Sprayer Engine being manufactured by the petitioner-Company otherwise than at the rate at which the Central Excise authorities are recovering excise duty from the manufacturers of the same pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is that in view of the aforesaid classification in Maharashtra and Tamil Nadu, the petitioners' competitors are not paying any Excise duty whereas the petitioner-Company is required to pay Excise duty at the rate of 16% ad-valorem and, therefore, the petitioner is unable to compete with them and petitioners' factory is closed down since December 2003. Mr. Paresh M. Dave, learned counsel for the petitioners, has relied on the decision of this Court in Ambica Meta Yarn Manufacturing Co. v. Superintendent of Central Excise and Ors., 1982 (2) GLR 155, wherein this Court has held that even when alternative remedy is available, the High Court may interfere where the Excise authorities of other States are accepting the interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is given to the petitioner-Company and respondent No. 3, the Assistant Commissioner was also expected to call for the information from the concerned officers of different States. The relevant observations are as under: (i) As far as machines being manufactured by High Power Engineering Company Private Limited is concerned, respondent No. 3 has clearly expressed the view that they have cleared their goods HP 35 Agricultural Engine without payment of duty under Chapter Heading 84.24 and that the Central Excise authorities of said M/s. High Power Engineering Company Private Limited have confirmed that the same is allowed to be cleared without payment of duty. (ii) Respondent No. 3 has referred to the invoice produced by the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay excise duty at nil rate whereas the petitioner-Company has to pay excise duty at 16% ad-valorem and the petitioner-Company could not absorb this high rate of excise duty on its own without passing the same on to the purchasers. 7. The relevant tariff entries are as under: Chapter 84 Machinery, mechanical appliances and parts thereof CHAPTER 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF Heading No Sub Heading No. Description of goods Rate of duty 84.07 8407,00 Spark-ignition reciprocating or rotary internal combustion piston engines 16% 84.12 Other engines and motors 8412.10 -All goods other than parts 16% 8412.90 -Parts 16% 84.24 Mechanical appliances (whether or not hand op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured by High Power Engineering Co. Pvt. Ltd. (3) "Greaves" agricultural mechanical components for sprayer - L36 higher RPM. As the above are petrol engines 35CC. These engines are fitted with knapsack sprayer and are sold to farmers for agriculture use." It is clear that the other manufacturers, like the petitioners, also are merely making engines which are fitted into the knapsack agriculture sprayers being manufactured by the purchasers from the petitioners and the two other manufacturers and then such sprayers with the engines are sold to farmers for agriculture use. 9. In view of the above facts and circumstances, we are of the view that when the same product is being manufactured by three different companies--M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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