- (1.) THE short question which needs determination in this petition under Articles 226/227 of the Constitution of India is as to whether the trolly type stands manufactured by the petitioner-company are steel furniture within the meaning of entry 40 of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act ).
(2.) THE petitioner, M/s. Electronics Limited, a public limited company, is engaged in the manufacture of Room Air-coolers, marketed under the trade mark 'gulmarg' and with these coolers a trolly type stand made of steel is also provided as an accessory. Admittedly, no excise duty, on this item was leviable prior to March 1, 1968. By. Finance Act No. 19 of 1968, entry No. 40 was introduced in Schedule 1 to the Act which reads as under :" steel furniture made partly or wholly of steel in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, whether in assembled or unassembled condition-"
(3.) AFTER the introduction of that entry, which was made effective with effect from March 1, 1968, the Central Excise Department advised the petitioner company that the said trollies were liable to excise duty. Consequently, the petitioner cleared two consignments of trollies on April 15 and 16, 1968, after paying the excise duty thereon in the amount of Rs. 8,250/- However, the peti tionercompany on 17th Aprii made a representation to the 'collector, Central Excise, New Delhi, respondent No. 3, that the trollies being part and parcel of the air-coolers were not steel furniture within the meaning of the said entry and, therefore, not liable to excise duty. Excise department agreed with the stand of the petitioner-company and Respondent No. 2, the Assistant Collector, Central Excise, Faridabad, informed them accordingly. Thereafter, on July 9, 1968, the petitioner-company received a communication from the Inspector, Central Excise demanding duty on the trollies manufactured from March 1 to July 9, 1968. The representation made against this demand did not find favour with the Central Board of Revenue or the Government of India as is evident from the reply Annexure 'k' dated December 4, 1968, received from the Ministry of Finance which necessitated the filing of the present petition.;