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TMI Blog1980 (6) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... to the principal manufacturer and receive proportionate consideration for the biris rolled in their premises. By Trade Notice No. 135/79 (Hand made biris No. 6/79), dated 22-6-1979 all agents including contractors, sattedars and takedars of principal manufacturers of biris, whose clearance of raw biris in a financial year exceed 60 lakhs were required to take out a licence in Form No. L-IV and execute bonds for removal of raw biris provided they do not themselves sort, bake or wrap the biris. It is not necessary to refer to the other items in the notice as we are not concerned with them in these Writ Petitions. Form No. L-IV licence is a licence which is required to be taken by a manufacturer under the provisions of the Central Excises and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo notices requiring Takedars whose clearance of biris exceeds 60 lakhs to obtain Form No. L-IV licence is discriminatory. 3. On the other hand, Mr. K. Subrahmanya Reddy, the learned standing Counsel for the Central Government contends that Takedars are manufacturers within the definition of Section 2, clauses (f) and (f)(i) and biris are excisable goods as it is an item mentioned in the First Schedule. He further submitted that the requirement to obtain Form No. L-IV licence was confined to such of the Takedars, who clear more than 60 lakhs of biris in a year as Trade Notification No. 31/79, dated 1-3-1979 exempts the clearance of biris on behalf of a manufacturer upto 60 lakhs from the whole of the excise duty leviable thereon. It was t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the prescribed form. Clause (b) of Section 6 deals with a person, who purchases or sells or storage any excisable goods. Rule 174 also prescribes that every manufacturer of excisable goods except salt to take out a licence in the proper form. Rule 176 directs that every application for the licence should be in one of the forms of application as may be appropriate and Form (A) L-IV was the form in which an application for licence was to be made by the manufacturer of excisable goods. All these provisions make it clear that a manufacturer of excisable goods will have to obtain a licence in Form No. L-IV. 5. The question for consideration therefore is whether a Takedar, who obtain leaves from the Principal Manufacturer and get them rolle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned specifically in the First Schedule. Similarly the decision in S.B. Sugar Mills v. Union of India, AIR 1968 Supreme Court 922 = 1978 [E.L.T. (J 336)] on which reliance was placed by the petitioner is of no assistance as the gas which was subjected to excise duty was held by the Court not to be carbon dioxide while only carbon dioxide was liable to duty. 8. The next question to be considered is whether the petitioners can be said to be manufacturers within the meaning of Section 6 read with Rule 174 and are required to take out of a licence in Form No. L-IV. If they come under the category of manufacturers it is not in dispute that they will have to obtain a licence in Form No. L-IV and follow the excise procedure. The definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also any person, who engage labour in their production or manufacture on his own account. Having regard to the definition of the word `manufacture', the contention of the petitioners that mere preparation of biris cannot amount to manufacture of biris is unsustainable. 9. It is next contended that the two impugned notices are discriminatory inasmuch as only persons manufacturing more than 60 lakh biris per year are asked to take out a licence while others are not required to take out a licence. In the counter affidavit, it is stated that as per the Notification No. 31/79, dated 1-3-1979 the clearance of unbranded biris upto 60 lakhs in a financial year are exempted from the whole of the excisable duty leviable thereof and the clearance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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