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TMI Blog1970 (4) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... additions such as bottom rails, springs, pillows, rexin, etc. and use them according to their needs as furniture in the railway compartments and automotive cars. On April 17, 1968, the petitioner was orally informed by the Superintendent of Central Excise, Sembiam, MOR Madras-23, that it was liable to declare its stocks as on February 29, 1968 and take out a licence as manufacturer of excisable goods, namely, steel furniture. The 1st respondent's case is that there was a directive from the Government of India that seats and other steel furnishings do come under Item 40 of the Central Excise Tariff appearing in the First Schedule to the Central Excise and Salt Act, 1944. The petitioner submitted its objections to the letter dated April 27, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lia stating that Item 40 of the tariff will only apply to what are known as steel furniture whether in assembled or unassembled condition and that tabular frame supplied by it are not excisable goods within the meaning of the Act. It contends that there was no legal basis for the demand. Such contention were repeated before us and the learned Counsel for the petitioner added that the petitioner is not obliged to take out a licence, under Section 6 of the Act in the absence of a Notification that the articles manufactured by the petitioner are notified components of steel furniture as provided thereunder. 2.The respondents answering to the contentions would state that the articles in question do retain all the characteristics of steel furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cutive exemption. The answer to the second poser concludes the real issue in this Writ Petition; but as the first poser also has been fully argued, we wish to render our answer thereon as well. 4.It is not in dispute that the goods manufactured by the petitioner are tabular steel frames, tabular seat frames and angles for the purpose of being fitted into the seats of railway coaches manufactured by the Integral Coach Factory Madras and seats manufactured by Standard Motor Products India Limited. No doubt, the product is not a commercial product as is popularly understood, because it is invariably fabricated to specification. The finished article suits only the Railway and the Motor company. But it cannot be said that by reason of its limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise and includes salt. Section 2(k) defines a "wholesale dealer" as a person who buys or sells excisable goods wholesale for the purpose of trade or manufacture, and includes a broker or commission who, in addition to making contracts for the sale or purchase of excisable goods for others, stocks such goods belonging to other as an agent, for the purpose of sale. It is not disputed that the petitioner is a wholesaler in the sense it is a seller of specified goods for purposes of trade and commerce. But, are the frames and angles excisable goods? The Revenue claims that they satisfy the description in Item 40. The specific case is that the goods are steel furniture. To be understood as goods, it is necessary that they must popularly be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 does not include part of furniture. The word 'furniture' has a special meaning in commerce. If railway seats are contracted for and in performance thereof, tabular frames of steel are supplied, it would not amount to performance and consequential discharge of the contract. The dictionary meaning of 'furniture' is articles of convenience or decoration used to furnish a premises, may it be residential or non-residential. It cannot be said that the articles such as frames, though made of steel and though a component of furniture, is steel furniture by itself. It is a specifically fabricated article on the basis of a particular specification and it has no meaning as furniture in the common market. The goods in question do not fall under Item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods included in the First Schedule or of saltpetre or of any specified component parts or ingredients of such goods of specified containers of such goods, or (b) the wholesale purchase or sale (whether or his own account or as a broker or commission agent) or the storage of any specified goods included in the First Schedule." 12.The condition precedent for the infliction of the licence under Section 6 on the producer or manufacturer is that a notification in the Official Gazette, issued by the Central Government should specify as to what sort of operation or engagement is licenceable. No doubt, the manufacture or production of a component part of the goods specified in the First Schedule is licenceable. A tubular frame of ste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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