R.A. Sharma, J. - (1.) Petitioner, U.P State Electricity Board, (hereinafter referred to as the Board), was Constituted in 1959 under Section 5 of the Electricity (Supply) Act, 1948. The Board had established Electricity Fabrication unit with its headquarters at Naini (Allahabad) in 1975 for fabrication and galvanizing mild steel (i.e. angle iron etc.) required for erection of towers and transmission lines etc. The Central Excise and Customs authorities required the Board to pay excise duty on goods manufactured in its fabrication unit. The Board protested and made representations in connection therewith; but its plea was rejected by the Department by its order dated 5-9-1983. Officials of the Department of Central Excise had also seized fabricated steel, iron etc. Hence this petition.
(2.) Respondents have filed counter affidavit and the petitioner has filed rejoinder affidavit in reply thereto. We have heard the learned counsel for the petitioner and the learned standing counsel for the Department and the writ petition is being disposed of in accordance with the rules of the court.
(3.) Learned counsel for the Board has challenged the action of the respondents on two grounds, namely (i) goods produced by the fabrication units of the Board have been exempted by notification issued by the Central Government and (ii) fabrication and galvanizing carried on in its unit does not amount to manufacture and as such no excise duty can be charged. Learned standing counsel has on the other hand tried to justify the action of the respondents.;