9911796707
TMI Blog1991 (11) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... as decided by the learned single Judge by his order dated 14th August, 1987. 2. The petitioner manufactures certain varieties of paper known as 'core paper' and "wrapping paper" or "wrapper". Both are excisable commodities under the Central Excise Tariff. The controversy that was raised in the writ petition by the petitioner was, whether the value of the wrapper paper was required to be included for determining the value of the core paper for the purposes of levy of excise duty. The precise controversy arose in view of the incorporation of Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944. The Excise Department issued a show cause notice to the writ petitioner bringing to its notice that from the record, it was found that for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded for determining the value of the core paper for the purposes of levy of excise duty. The learned Single Judge however, rendered no finding with regard to the plea regarding the maintainability of the writ petition only against the show cause notice. 3. The learned Additional Central Government Standing Counsel submitted that the finding of the learned Single Judge that the value of the wrapper paper where it had separately suffered excise duty in the hands of the manufacturer was not to be included for determining the value of the core paper for the purposes of determining the excise duty on the ground of double taxation, was erroneous. It is submitted that it was not the wrapper paper which was being subjected to tax Once again, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvited our attention to the finding of the learned Single Judge also where it has been observed that the writ petitioner was not on principle grudging the tacking on the value of the wrapper paper to the value of the core paper to arrive at the excisable value of the latter, and also to the earlier observation to the effect that the core paper has necessarily to be got packed in the wrapper paper before it is cleared for the market, to urge that the core paper was necessarily to be packed for marketability. 5. The material on the record is scanty as to whether the wrapper has been used only for convenient distribution of the finished product as alleged by the petitioner or was necessarily required to be used for the marketability and effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cussed the object and scope of Section 4(4)(d)(i) of the Act, which had been incorporated in the Statute Book. The Apex Court was of the view that the Section had made an express provision for including the cost of packing in the determination of 'value' for the purposes of excise duty and that, where packing is necessary to make the excisable article marketable, the value was required to be included for determining the value of the contents. Unless a clear picture emerges about the position as to whether the wrapper was used for convenient distribution or was necessary for making the excisable commodity saleable and marketable, every other discussion would be futile. We however, find ourselves unable to agree with the learned Single Judge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se duty or not, is to be included, it would be futile to contend that the action would involve double taxation. The findings of the learned Single Judge in that behalf cannot, therefore, be sustained. 6. However, whether in this case the wrapper was used for convenient distribution or to make the excisable commodity marketable requires a finding because the value of the wrapper would be includable in the value of the core paper only if the wrapper was used to render the core paper, marketable and saleable and the material on the record is not sufficient to return a finding one way or the other. Faced with this situation, it is submitted before us by the learned Counsel for the respondent-writ petitioner that the writ petitioner may be gran ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
