D.S. Mathur, C.J. - (1.) THIS judgment shall govern Writ Petitions Nos. 7709 and 7710 of 1973 by Messrs. Bansal Steelsons Company Private Limited and Messers. Prakesh Industries, respectively, for the issue of a writ of certiorari, order or direction in the nature of certiorari to quash the order dated 14 -11 -1973 passed by the Superintendent, Central Excise M.O.R. Meerut, respondent No. 4 directing the petitioners to pay excise duty on the finished goods falling under sub -item (ia) of item No. 26AA of the First Schedule to the Excises and Salt Act. There is also a prayer for the issue of a writ of prohibition, order or direction in the nature of prohibition to direct the respondent, namely, the Union of India, the Collector Central Excise, Kanpur, the Assistant Collector, Central Excise, Meerut, and the Superintendent, Central Excise, M.O.R. Meerut, not to recover any Excise Duty on the above mentioned goods manufactured by the petitioner.
(2.) THE facts of the case are not in dispute. Both the petitioners manufacture roll bars after cutting or breaking ingots received from Mini Steel Plants electric are furnace units on which appropriate amount of excise duty has already been paid. They do not purchase ingots from major steel plants like Hindustan Steel Limited. The ingots as received are almost in the shape of billets and as a result of cutting or breaking, the shape of the pieces of the ingots is not altered and these pieces are rolled into bars etc. Under notification dated 30 -11 -1963 as amended in August 1965, iron or steel products falling under sub -item (ia) of Item No. 26AA of First Schedule to the Central Excises and Salt Act made from the following materials are exempt from the excise duty. "Ingots on which the appropriate amount of duty of excise has already been paid, cut or broken (but not rolled) in any shape resembling the shape of any of the products referred to in sub -item (i) of the said Item No. 26AA". The case of the petitioners is that the steel products manufactured by them, falling under sub -item (ia), from the ingots received from the Mini Steel Plants on which the appropriate amount of duty has already been paid are exempt from payment of further excise duty. The Excise Department has, however, taken a contrary view and they are taking steps to recover excise duty on the steel products so manufactured. The respondents rely upon the opinion of Messrs, M.N. Dastur and Company Private Limited, who were technical consultants of the Department of Iron and Steel. The opinion, so given, is not conclusive and it will, therefore, be proper to refer to the pleas raised by the respondents.
(3.) THE imposition of the excise duty is supported on two grounds taken in the alternative. Firstly, that the exemption applies to only ingots received from large steel plants which have to be cut both horizontally and vertically make them resemble the shape of any of the products referred to in sub -item (ia) and does not apply to ingots received from Mini Steel Plants which already resemble that shape and have merely to be cut or broken. In the alternative, it is pleaded that the exemption could apply to the cut or broken pieces of ingots only if received from the suppliers, namely Mini Steel Plants and not when they are cut or broken by the petitioners themselves. None of these contentions have any force.;