INTERNATIONAL TRACTOR CO OF INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This is the petition (1) for a writ of certiorari for quashing certain orders of the Assistant Collector of the Central Excise and of the Collector of Excise in appeal therefrom levying excise on the tractors manufactured by the petitioners by including in the assessable value thereof the value of the hour meter and/or wheel weight or front end weights, (2) for a writ of prohibition against the respondents from desisting or for bearing from re-opening the provisional assessment in respect of the tractors manufactured by the petitioners by including in the assessable value of the said tractors the value of the said hour meters and/or the wheel weights or front end weights, and (3) for writ of mandamus against the said officers to withdraw or cancel the said orders.

(2.) The petitioners have been manufacturing in their factory tractors known as McCormic International B-276 Tractors. The tractors so manufactured were supplied with certain parts and accessories as standard equipment, being a hydraulic lift, a three point linkage, power take off, lighting equipment, a set of tools and electric horn. The Government of India under powers confirmed under the Essential Commodities Act, 1955, promulgated an order known as the Tractors (Price Control) Order, 1967. The said order defined a 'tractor' to mean "an agricultural machinery known by that name and fitted with the diesel engine of a capacity not exceeding 50 H.P.S." and defined the sale price 'to mean' the amount payable to a manufacturer as consideration for the sale of a tractor excluding tax. It empowered the Central Government to fix the sale price of tractors manufactured in India and provided that no manufacturer could sell a tractor for a sale price exceeding the sale price fixed by the Government of India and made a sale in contravention thereof criminal offence against the manufacturers.

(3.) In pursuance of the said order, the Central Government by notifications (Ex. A collectively to the petition) issued from time to time, fixed the price of tractors of different manufacture. The said notification while fixing the price in terms provided in column 5 thereof that "the sale price, in column 5 thereof includes the price of the following accessories/ attachments which shall be supplied with every tractor :- "(a) Hyd. lift. (b) 3-pt. linkage (c) power take-off, (d) Lighting equipment, consisting of hd. light, tail, light, (e) A set of tools, and (f) Elec. horn."