UNION OF INDIA Vs. KIRLOSKAR BROTHERS LTD

JUDGEMENT

(1.) THIS is a petition under Articles 132 (1) and 133 (1) of the Constitution of India for a certificate of fitness for leave to appeal to Supreme Court against a Division Bench decision of this Court, dated 26-9-1974, passed in Misc. Petition No. 55 of 1972 [1978 E. L. T. (J 33)].

(2.) THE respondent, a limited company having a branch at Dewas, had been manufacturing power driven pumps. By notification, dated 29-4-1969 in exercise of the powers conferred by Sub-Rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government had exempted during the period commencing on 1-3-1969, the power driven pumps falling under item No. 30a of the First Schedule to the Central Excises and Salt act, 1944, from whole of duty of excise leviable thereon. That benefit was available to those manufacturers only, who produced proof to the satisfaction of the Collector of Central Excise that such benefit had been passed on by them to the person to whom they had sold the said power driven pump. This benefit was continued by the Government upto 16-3-1972 and with effect from 17-3-1972 the excise duty was made payable at 10% ad valorem on the price and any duty leviable under the Act in excess of 10% was continued to be exempted. Thus, upto 16-3-1972 there was no excise duty payable, but it became payable at I 10% of the price with effect from 17th March, 1972.

(3.) THIS Court relying on the pronouncement of their Lordships of the Supreme Court in British India Corporation Ltd. v. Collector of Central Excise - AIR 1963 S. C. 104 examined the nature of the excise duty, which under Section 3 of the Central Excises and Salt Act, 1944, is a duty leviable on production or manufacture of excisable articles. The question was as to when the liability for excise duty would arise. The opinion expressed by this Court was that it would arise on the manufacture or production of an excisable article and, therefore, till 16-3-1972, but which were in the stock of the manufacturer were exempt from excise duty. The excise duty would be payable on excisable articles produced or manufactured on 17-3-1972 onwards. Aggrieved by this decision, the department has filed this leave petition.