SIKRI, - (1.) THE following Judgment of the court was delivered by :-
(2.) I have had the advantage of reading the draft judgment prepared by Hegde, J., but, while I agree with him that there is no force m the plea of limitation advanced on behalf of the assessee, in my opinion the appeal should fail on the ground that the excise duty was levied correctly as determined by the central government in its order dated 2/11/1997. 1176 The facts are fully set out in the judgement of Hegde, J. It is only necessary to mention a few facts in order to make this Judgment readable. The assesses manufactures iron and steel products. It manufactured wires out of steel rods, which had been imported by JUDGEMENT_1173_AIR(SC)_1970Html1.htm The short point that arises is this: What is the duty leviable on the wires manufactured by the assessee out of steel rods which had already been imported ? For the time being I will ignore notifications issued under Rule 8 (1) of the rules made under the Excise Act, and the amendments made by the Finance Act (No. 2) of 1962, and Indian Tariff (Amendment Act) .1963 (III of 1968) to the Indian Tariff Act, 1934 . "Wires" are mentioned in item No. 26AA(i). Therefore we have to scrutinize the third column of item 26-AA (i) for the rate of duty. Three points need clarification: (a) What is the meaning of or inference derivable from the word 'plus' ? (b) What is the meaning or the formula "the excise duty for the time being leviable on pig iron or steel ingots ?" (c) What is the import of the words "as the case may be ?
(3.) THE word 'plus' in the context indicates that the rate of duty consists of 2 parts: one part is ad valorem duty and the other is the excise duty calculated according to the formula given. In other words, both duties have to be levied, I will presently discuss what the formula It prior to 24/04/1962. Item 26AA was added to the First Schedule of the central Excises and Salt Act, 1944 (l of 1944) - hereinafter referred to as the Excise Act - by Finance Act (No. 2), 1962 (XX of 1962) with effect from 24/04/1962. This reads as under: THE FOLLOWING, NAMELY: Five per cent. ad valorem plus the excise duty for the time being leviable on pig iron or steel ingots, as the case may be. Seven and a half per cent ad valorem plus the excise duty for the time being leviable on pig iron or steel ingots, as the case may be. Seven and a half per cent, ad valorem plus the excise duty for the time being leviable on pig iron or steel ingots, as the case may be. Five per cent ad valorem plus the excise duty for the time being leviable on pig iron or steel ingots, as the case may be. Five per cent. ad valorem plus the excise duty for the time being leviable on steel ingots." means but this is clear that the third column contemplates one duty, consisting of two parts, being levied. Before l discuss the meanmg of the formula it will clarify matters if the Import of the words "as the case may be is first ascertained. These words indicate that a choice has to be made between two types of excise duties-excise duty leviable on pig iron or excise duty leviable on steel ingots. Sub-items (ii), (iii) and (iv) of item 26AA use the same set of words. In sub-item (v) excise duty leviable on steel ingots is only mentioned. This sub-item consists of steel casting. This indicates that the duty is being calculated thus because steel castings have been made from steel ingots. item 26AA deals with iron and steel products. It seems to me that the context indicates that the words "as the case may be" denote that the excise duty leviable on pig iron is to be charged if the product is an iron product; if it is a steel product then the excise duty leviable on steel ingots is to be levied. In other words, this decides the choice whether item 25 (Pig iron) or item 26 (steel ingots) is to be looked at. Although I was not enlightened on the point by 1177 counsel during the course of the hearing I have no doubt that the excise Department and the trade know how to distinguish a steel product from an iron product. If there is a dispute on the point it will have to be resolved in the future.;