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TMI Blog1982 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the Notification which have a relevance to the question. Notification No. 42 of 1981 issued under rule 8 reads as follows :- "GSR....In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts matches in or in relation to the manufacture of which none of the following mechanical prccessess, namely :- (i) box making; (ii) frame filling; (iii) dipping of splints in the composition for match heads; (iv) filling of boxes with matches; (v) labelling and banderolling; and (vi) packaging, is ordinarily carried on with the aid of power, falling under Item No. 38 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) and cleared for home consumption by a manufacturer from so much of the duty of excise leviable thereon as is in excess of Rs. 4.50 per gross boxes 2 of 50 matches each: Provided that- (i) in the case of matches packed in boxes in which both the outer slide as well as the inner slide are made of cardboard, the amount of exemption shall be increased by sixty paise per gross of boxes; (ii) in the case of matches packed in boxes in which the inner slide alone is made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1981, which reads as follows :- "GSR....In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts matches of the description specified in column (2) of the table hereto annexed and falling under item 30 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) and cleared for home consumption by a manufacturer from so much of the duty of excise leviable thereon as is in excess of the duty specified in the corresponding entry in column (3) of the said table. THE TABLE S. No. Description of matches Rate of duty (Rs. per gross of boxes of 50 matches each) 1. Matches packed in boxes in which the outer slide alone is made of cardboard 5.50 2. Matches packed in boxes in which the inner slide alone is made of cardboard 5.26 3. Matches packed in boxes in which both the outer slide as well as inner slide are made of cardboard. 4.90 : Provided that - (i) the amount of exemption shall be increased by fifty paise per gross of boxes if bamboo is used for the splints or for both splints and veneers; (ii) if the splints of such matches are made of bamboo and the matches are packed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .90 per gross of boxes of 50 matches each, was levied. This was subject to the further condition that the sum total of the value of the capital investment made from time to time on plant and machinery installed in the industrial unit in which the said matches are manufactured was not more than Rs. 20 lakhs. 2. There is no dispute that each of these petitioners satisfied the condition relating to the capital investment. The argument of the learned counsel for the petitioners in all these cases is that while granting exemption from the whole or any part of the duty under Rule 8, the Central Government can impose such conditions which are germane or relevant to the particular excisable commodity only and the conditions imposed in Notification No. 137 of 1981 are neither germane nor relevant for the purpose of such exemption. The learned counsel also pointed out that under Item 38 of First Schedule framed under Section 3 of the Central Excises and Salt Act, 1944, the word 'matches' is also defined. The container of the boxes in which the matches are packed and sold or the material used for making such boxes, have no relevance to the match sticks which are subjected to excise duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Constitutional validity of Section 13 of the Tamil Nadu Buildings (Lease and Rent Control) Act (25 of 1949) was considered. Though the provision was in general terms, the Supreme Court upheld the validity on the ground that there was enough guidance afforded by the preamble and operative provisions of the Act for the exercise of the discretionary power vested in the Government, so as to render any action taken under the said provision not open to attack on the ground of denial of equal protection of the laws. In the other decision also, the Supreme Court had taken a similar view with reference to Section 19 of the Slum Areas (Improvement and Clearance) Act, 1956 (Central Act 96 of 1956). In these writ petitions, the Constitutional validity of Rule 8 itself is not questioned and in fact it could not be questioned in view of the decision of the Supreme Court in Orient Weaving Mills v. Union of India, AIR 1963 S.C. 98, where the rule was questioned as excessive delegation, but that contention was rejected by the Supreme Court and the rule was held to be valid. As may be seen from all these judgments, though wide discretionary powers are conferred on the Government in the matter of gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot either reclaimable article or they have no value after their use. In those circumstances, according to the learned counsel, the concession granted with reference to the material used for making the boxes cannot be said to be not relevant or not consistent with the provisions or the purposes of the Act. We are of the view that the learned counsel for the revenue is well founded in his contentions. As may be seen from a reading of the provisions of the Act, a duty is levied under the Act on the basis of weight or at a fixed tariff or ad valorem. Section 4 deals with the valuation of excisable goods for purposes of charging of duty of excise. 'Value' is defined in Section 4(4)(d) in relation to any excisable goods as meaning 'Where the goods are delivered at the time of removal in a packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee'. Though this definition is given with reference to excisable foods where duty is payable on value, the reference to the packing being durable in nature and returnable by the buyer to the assessee is irrelevant and the provisions do take note of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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