NATIONAL RAYON CORPORATION LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) [His Lordship after stating the facts and the contentions of the parties, proceeded.] Now, it appears to us that the direct result of the findings made by the Supreme Court in the Orient Weaving Mills v. Union of India : [1968]1SCR1 , is that even in the matter of impost of excise duty as between two or more manufacturers the law permits preference in favour of groups validly classified for levying different rates of duty. The principle, if any, that indirect taxes must be uniform in respect of assessees and particularly in respect of impost of excise duty was not accepted or followed by the Supreme Court. On the contrary, the observations of the Supreme Court show that it was permissible for the Central Government in connection with levy of excise duty by preference to protect petty producers from unreasonable competition and to classify differently goods produced by big establishments and similar goods produced by small establishments.

(2.) THE further principles which emerge from these two decisions [Orient Weaving Mills case and British India Corporation v. Collector, Central Excise : 1978(2)ELT307(SC) ] may be conveniently stated as follows :

(3.) BEFORE dealing with contentions developed on behalf of the petitioners, it requires to be stated that in the arguments advanced sufficient attention has not been paid to the case made on behalf of the respondents and the facts as ascertained by the Committee of Secretaries in connection with conditions which in fact existed in the Mills and/or factories of the eight manufacturers concerned. The arguments advanced are all theoretical and general and appear in the first blush to be correct, because they do not take notice of the case of the respondents and the facts ascertained and existing at relevant time in the Mills of these eight manufacturers.