9911796707
TMI Blog1988 (3) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... lising the said machinery for the purpose of manufacturing woollen yarn in the same manner in which the said Gokulchand Rattanchand Woollen Mills Pvt. Ltd. was doing. On 25th of May, 1982, which is the culmination of the correspondence between the petitioner and the Excise Authorities, the Superintendent of Central Excise, who is the 4th respondent in this petition, called upon the petitioner to file two separate classification lists - one for wool tops and the other for carded gilled sliver under Tariff Item No. 43. It is the petitioner's case that the petitioner is not liable to pay any excise duty on carded gilled sliver under Tariff Item No. 43 for the reasons mentioned in the judgment of this Court given by Suresh, J. on 24th of August ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The sliver comes into existence after the raw-material, namely, the wool is subjected to carding process and it is drawn through certain machines for the purpose of making it uniform with the ultimate object of using the same for the manufacture of wool tops or for the manufacture of woollen yarn, After subbing, it is collected on wooden bobbins and then it is spun into woollen yarn, the entire process of manufacture has been explained in the petition. The same was taken note of also by Suresh, J. in Writ Petition No. 1180 of 1980. If a product, which is either manufactured or which comes into existence during the manufacture of some other commodity is incapable of being removed from the factory premises or, for that matter, incapable of be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious processes, such as trimming, threading and redrawing. After examining the evidence before it, the Supreme Court came to the conclusion that the aluminium cans which were being utilised by the appellant before it were incapable of being sold to a consumer in the market. If that was so, then the same could not be excisable goods and did not fall within the terms of Section 3 of the Central Excises and Salt Act read with, in that case, entry 27 of the First Schedule thereto. The petitioner, in the instant case, has contended, and this contention has been upheld earlier by Suresh, J. in the case of Gokulchand Rattanchand Woollen Mills Private Ltd., that the woollen slivers which are now sought to be made the subject of excise duty are in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the commodity was taken out of the factory or not. The validity of Rule 9 was upheld and it was held that if a particular commodity could be the subject-matter of excise duty, the levy can be made at a point fixed by the Rules, in that case Rule 9. The question as to whether excise duty could be levied on a commodity which was incapable of being sold to a consumer did not arise and obviously, therefore, was not considered by the Supreme Court in the case of J.K. Cotton Spg. Wvg. Mills Ltd. The question is not, as Mr. Bhatia says, whether it is sold or not. The question is whether it is capable of being sold. If it is incapable of being sold, Section 3 of the Excise Act is not attracted. 4. An argument was also advanced by Mr. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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