9911796707
TMI Blog1986 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... S. (Wheeled Toys) Tariff Item No. 68 of C.E. Tariff.", "Quantity; 1300 Nos. (details as per list enclosed)", "Value : Rs. 1,83,073.00". 2. Tariff Item No. 68 reads as under :- "68. All other goods, not elsewhere specified, but excluding; (a) alcohol, all sorts, including alcoholic liquors for human consumption; (b) opium, Indian hemp and other narcotic drugs and narcotics; and (c) dutiable goods as defined in section 2(c) of the Medicinal and Toilet Preparation (Excise Duties) Act, 1955 (16 of 1955). Explanation : For the purposes of this Item, goods which are referred to in any preceding Item in this Schedule for the purpose of excluding in such goods from the description of goods in that Item (Whether such exclusion is by mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts thereof" came to be wholly exempted from payment of any excise duty. The exemption from whole of the duty of excise was continued by notification No. 104/82-CE, dated 29th February, 1982, as also notification no. 234/82-CE, dated 1st November, 1982. 4A. The effect of the notifications taken together would be that as on 19th June, 1980, cycles and parts thereof were wholly exempted from excise duty. 5. The seizure in the instant case took place on 22nd May, 1981. This seizure obviously is based upon belief that the goods that were seized, were not cycles or cycle parts, but were wheeled toys. 6. Tricycles which were made by the petitioner, were also seized on 22nd May, 1981. 7. Mr. Haksar, appearing for the petitioner, has relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the respondent, relies upon the counter-affidavit filed in response to the show-cause notice issued by this Court for establishing that the implements manufactured by the petitioners that were seized by the respondent, were not cycles. He relies upon what is stated to be literature leaf-lets and advertisements published by the petitioners in connection with the manufacture and sale of their products. It is stated in this affidavit that the petitioners themselves described that what they made is wheeled toys. The literature referred to and relied upon, has not been appended to the said counter affidavit. Even on my/saying to Mr. Misra that he can try to produce it, he did not avail this opportunity. In fact he only said was that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted subject. It is to inform you that since Tricycles also fall within the definition of cycle, you are entitled for the concessional rate of excise duty payable on cycles and parts thereof vide notification No. 86/79, dated 1.3.1979. Yours faithfully, Sd/- SUPERINTENDENT CENTRAL EXCISE MOR II/MOD III In this view of the matter, in view of the dictionary meaning of the word "cycle" it is clear that tricycles must fall within the definition of cycles, as a matter of language common or otherwise, as a matter of dictionary meaning to be found in English language dictionaries. 13. It is contended by Mr. Misra that the cycles made by the petitioners are sold in toy shop. This would indicate that these are wheeled toys and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as it is commonly understood. 15. Mr. Haksar relies upon Trade Notice No. 86-CE (19-T) 68/85 dated 19th December, 1985, which is annexed as annexure 'B' to C.M. 25 of 1985, which reads as under :- "CENTRAL EXCISE COLLECTORATE : NEW DELHI TRADE NOTICE NO. 86-CE (10-T) 68/85, dated 19.12.1985 Sub : C.E. - Classification of children's bicycles and tricycles. Children bicycles/tricycles, bought and sold as cycles, will be eligible for exemption as cycles under Notification No. 234/82, dated 1.11.1982 as amended. Sd/- Additional Collector." 16. Mr. Misra says that this Trade Notice has no statutory effect. In my view, this Trade Notice is issued by the Central Excise Collectorate, by Additional Collector of Excise. It c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt. Sd/- (K.C.MAMGAIN) Additional Collector Copy or M/s. Tobu Enterprises (P) Ltd., B/29, Kirti Nagar Industrial Area, New Delhi-110015, with reference to their letter No. W/EX/29/9970 dated 7-1-1986." This letter also indicates that the law Section of the Central Excise Collectorate itself took the view that the products of the petitioners will stand exempt from the duty from the date of Trade Notice No. 86-CE (19-T) 68/85 dated 19th December, 1985. 19. In these circumstances, I am of the view that the seizure of goods vide seizure memo annexed as annexure 1 to the petition, was made on erroneous appreciation of the applicable notifications to the facts and circumstances of the case and the seizure was contrary to law. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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