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TMI Blog1984 (1) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... the required thickness. The rolled strips are cut into suitable widths. The strips are fed into punching presses which punch out circular and hexagonal forms. These circular and hexagonal forms are called 'callots' or 'blanks' and are utilised by dry cell battery manufacturers for being extruded into cans for use in making dry cell batteries. 2. Prior to the introduction in 1975 of the residuary Tariff Item 68 the callots were made exigible to excise duty under Tariff Item 26B(2), the relevant portion whereof reads thus: "26B Zinc -1........... 2. Manufactures, the following namely, plates, sheets, circles strips and foils in any form or size." Tariff Item 68 is a residuary item embracing "all other goods not elsewhere specified manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners. 4. The petitioners preferred an appeal before the Appellate Collector of Central Excise who, in his order dated 31st January 1976, observed that the petitioners had at one stage claimed that in the Brussel's Tariff Nomenclature the heading of zinc strips applied also to zinc strips cut to shape but had argued that the callots were nothing but zinc circles. He was unable to understand how the same item could simultaneously be a 'strip cut to shape' and a 'circle'. He could not accept either submission-The callots were known in the market as callots and were so known to manufacturers of dry cell batteries. Therefore, they were not covered by Tariff Item 26B. Inasmuch as they were not covered by any tariff item upto Item 67, they fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents, that prior to 1st March 1975 callots manufactured by the petitioners were cleared under Tariff Item 26B(2). Thus, according to the excise authorities themselves, callots were specified under Tariff Item 26B(2) and were being made exigible to duty thereunder. No satisfactory explanation is forthcoming in the impugned orders, the affidavit in reply and across the bar how callots ceased to be specified under Tariff Item 26B(2) on and after 1st March 1975 and became exigible under the residuary Tariff Item 68 which covers only those articles which are not specified by any other item of the tariff. This affords the strongest indication that callots were and remain exigible under Tariff Item 26B(2). 8. Tariff Item 26B(2) covers zin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em (2) of Tariff Item 26B, they should be treated as circles. Lastly, the order in revision refers to the fact that callots are known and sold to dry cell battery manufacturers as callots and not strips. What the evidence is in this behalf is not referred to. 10. Mr. Devdhar, learned advocate for the respondents, stated that since 1st March 1981 a separate sub-item 2(a) has been incorporated in Tariff Item 26B which specifies callots. He draws my attention to budget instructions which refer to this amendment. They note that there had been disputes regarding the classification of zinc callots which were small blanks, generally circular or hexagonal in shape, used in the manufacture of cans for dry battery cells. A separate item (2a) had be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question before me. 12. The learned advocate for the respondents also referred to the judgment of the Allahabad High Court in Geep Flashlight Industries Ltd. v. Union of India, (Writ Petition Nos. 370/76 and 373/76 decided on 29.11.1978 by H.N. Seth and V.K. Mehrotra, JJ., 1979 E.L.T. 674). It was the contention of the Excise authorities in Allahabad that the rough rolled flat forms of zinc which emerged at an intermediate stage of the process of manufacture of dry cell batteries ought to be treated as zinc sheets within the meaning of Tariff Item 26B (2). The manufacturer contended that there were not zinc sheets. Upon the evidence the court came to the conclusion that the demand made by the excise authorities for excise duty on the fla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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