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TMI Blog1975 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... e of condensed milk that by itself will not take condensed skimmed milk out of the Exemption Notification and include it in the excluded Item 13. For the purpose of levy of excise duty, therefore, condensed skimmed milk remains included in the Exemption Notification. Appeal allowed - direct the respondents not to enforce their demand of excise duty - 1257 of 1973 - - - Dated:- 6-10-1975 - A. Alagiriswami, P.K. Goswami and Untwalia, JJ. [Judgment per : Untwalia, J.] - The appellant in this appeal by special leave is a registered partnership firm and is carrying on business of manufacturing a number of milk products including Condensed Milk and Condensed Skimmed Milk. By the Finance Act, 1969 Item 1B was added to the First Schedule o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the payment of such duty on the latter product on the ground that condensed skimmed milk fell within the Exemption Notification and not within the excluded Item 13 of that notification. The authorities did not accept his stand to be correct and issued two notices dated 4-8-1971 and 7-8-1971 demanding a sum of ₹ 1,048/- and ₹ 3,064/- respectively as duty payable on condensed skimmed milk manufactured by the petitioner during certain periods. The petitioner filed a writ application in the Allahabad High Court to challenge the demand of excise duty on condensed skimmed milk. A Bench of the High Court took the view that condensed skimmed milk was also condensed milk covered by the excluded Item 13 of the Exemption Notification da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure IV. The assessee may maintain daily account and submit quarterly RT 5 return only in respect of these specified raw materials. In Annexure IV are to be found Items 13 and 14 respectively in this terms : 13. Milk powder but excluding such powder specially prepared for feeding of infants. 14. Condensed milk whether sweetened or not. In column 4, under the heading names of important raw materials against item No. 13 is mentioned whole fresh milk/skimmed milk as the case may be and against Item 14 are found the words fresh milk/and sugar . It would be noticed that the description in Items 13 and 14 of Annexure IV is identical to that of Items 12 and 13 in the list of excluded items from the Exemption Notification. Yet i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the respondents pointed out that the petitioner had obtained a licence for manufacture of condensed milk only under the Excise Act. It did not obtain a licence for manufacture of condensed skimmed milk. Counsel, therefore, submitted that for the purpose of the levy of the excise duty both would be on the same footing. Learned counsel for the appellant submitted in reply that if excise duty was not leviable on condensed skimmed milk then no licence was required for its manufacture. The position of law seems to be this under Section 6 of the Excise Act no person can engage in the production or manufacture of any specified goods included in the First Schedule of the Act except under the authority and in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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