M.N.Roy, J. - (1.) The petitioner Tide Water Oil Company (India) Limited (hereinafter referred to as the said Company), is a Company incorporated under the Indian Companies Act, 1913 and an existing Company under the provisions of Companies Act, 1956 and has its registered office at Clive Row, Calcutta. That apart, for the purpose of its business the said Company has a factory at 109, Foreshore Road, Howrah, which is also registered as a factory under the Factories Act. It has been alleged that in the said factory no manufacturing process is carried on and in fact the said Company in that factory carries on blending or processing only.
(2.) It further appears that at the said factory of the said Company makes or manufactures lubricating oils by further processing of blended or compounded lubricating oils purchased from open market. These lubricating oils being excisable goods under the provisions of Central Excises and Salt Act, 1944 (hereinafter referred to as the said Act), it has been stated that excise duty on such lubricating oils are duty paid before they are put to sale in open market and in fact it has been alleged that prior to the necessary purchase of such lubricating oils by the said Company, the duty on them are required to be paid and, in fact, they are paid. The said Company has further stated that their processing involves ad-mixture of additives (which are not "ingredients" within the meaning of Item 11B of the First Schedule under the said Act. Since a reference to Items 11, 11A and 11B of the Schedule will have to be made, these are quoted hereunder ;
(3.) As stated hereinbefore, it has been contended that the products of the said Company, which is Grease, and is produced by the admixture of additives which are not "ingredients" within the meaning of the items as above, so such products could not come under any of the items and as such no tax could be levied on them considering them thereby to fall within various grades of lubricating oils as mentioned in the said items, It has been stated that despite the admixture of additives with the excisable goods like lubricating oils produced by the said Company are not liable for or required to be charged to excise duty under the aid Act since asphalt and blended or compounded lubricating oils which are compounded to make their products, as stated hereinbefore have already been charged to excise duty and necessary duty has also been duly paid before being sold in the market. In support of such contentions, the said Company relied on notices or directions dated December 24, 1973, June 3, 1974, August 27, 1974 and April 29, 1976 being Annexures "A" to the petition.;