Decided on January 01,1980

UNION OF INDIA Respondents

Referred Judgements :-



- (1.)By this petition under Article 226 of the Constitution, the petitioner challenges the order dated 15th Oct. 1975 passed by the Assistant Collector, Central Excise, Raipur, and the order dated 5th March, 1976 passed by the Appellate Collector, Central Excise, New Delhi.
(2.)The petitioner is a partnership firm registered under the provisions of the Indian Partnership Act. The petitioner, amongst others carries on the business of repacking glucose in small packets. The petitioner purchases glucose from M/s. Anil Starch Products Ltd. and M/s. Maize Products, Ahrnedabad packed in bags. The petitioner repacks glucose in small cartons and tin containers with the label containing trade mark of Eagle Brand. The manufacturers namely, M/s. Anil Starch Products Ltd. and M/s. Maize Products, from whom the petitioner purchases glucose in bulk, pay excise duty under Tariff Item No. 1-E of Schedule 1 of the Central Excises and Salt Act, 1944, and put on every bag and bills the specific wording "not for Medical Use". The view taken by the Asstt. Collector and the Appellate Collector is that repacking of glucose done by the petitioner amounted to "manufacture" within the definition as contained in Section 2 (f) (iii) of the Act and the petitioner was liable to pay excise duty under Tariff Item No. 14-E of Schedule 1. The question before us is whether the view so taken by the Asstt. Collector and the Appellate Collector is correct in law.
(3.)Section 2 (f) (iii) reads as follows:
"(f) 'manufacture' includes any process incidental or ancillary to the completion of a manufactured products; and

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(iii) in relation to patent or proprietary medicines as defined in Item No. 14-E of the First Schedule and in relation to cosmetics and toilet preparations defined in Item No. 14-F of that Schedule, includes the conversion of powder in tablets or capsules, the labelling or relabelling of containers intended for consumers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumers",

Tariff Items Nos. 1-E and 14-E of Schedule I are as under:-

"IE Glucose and Dextrose and Preparations thereof: Ten per cent . ad valorem.

(1) Glucose in whatever form, including liquid glucose, dextrose monohydrate and anhydrous dextrose.

(2) Preparations of glucose and dextrose in which the reducing sugars expressed anhydrous dextrose amount to more than 80% by weight.

14E. Patent or proprietary medicines not containing alcohol, opium, Indian hemp or other narcotic drugs or other narcotics other than those medicines which are exclusively Ayurvedic, Unani, Sidha or Hompeopathic Twelve and a half per cent ad valorem.

Explanation I. "Patent or proprietary medicines" means any drug or medicinal preparation, in whatever form, for use in the internal or external treatment of, or for the prevention of ailments in human beings or animals which bears whether on itself or on its container or both, a name which is not specified in a monograph in a Pharmacopoeia, Formulary or other publications notified in this behalf by the Central Government in the Official Gazette or which is a brand name that is, a name or a registered trade mark under the Trade and Merchandise Marks Act, 1958 (43 of 1958), or any other mark such as a symbol, monogram label signatureor invented words or any writing which is used in relation to that medicine for the purpose of indicating or so as to indicate a connection in the course of trade between the medicine and some person having the right either as proprietor or otherwise to use the name or mark with or without any indication of the identity of that person.

Explanation II.- "Alcohol", "Opium", "Indian Hemp", "Narcotic Drugs" and "Narcotics" have the meanings respectively assigned to them in Section 2 of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955."

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