NATIONAL BOARD OF REVE­NUE Vs. BATA SHOE COMPA­NY (BD) LTD.

JUDGEMENT

(1.) This appeal by special leave, at the instance of the Revenue, is directed against the judgment and order of the High Court Division, Dhaka, passed in the respondent's Writ Petition No. 235 of 1985.

(2.) The respondent, M/s. Bata Shoe Company (Bangladesh) Limited, manufactures different types and categories of footwear in its factory at Tongi and sells its products through its shops, agents and depots in the whole of Bangladesh. The company purchases several categories of footwear manufactured locally by cottage industries without the aid of any machinery operated by power, steam of gas, and sells them to its customers under its trade mark and trade name. This is done, it is claimed, in order to associate cottage industries, to assist and involve small manufacturers in the development of shoe business and to offer to the customers good quality footwears of given specifications.

(3.) The respondent's case is that according to the provisions of Notification No. SRO-225-L/83/94-Excise dated 30.6.83 the Ministry of Finance and Planning, Internal Resources Division issued under section 12(A)(1) of the Excise and Salt Act, 1944 (Act 1 of 1944) excise duty to the extent of 10% of the retail price had to be paid on all footwear manufactured mechanically, the retail price of which was above Tk.100/-. An additional 2% regulatory duty was also imposed by the Finance Act of 1984. Earlier, according to the provisions of SRO 17-L/83/86-Excise dated 9.1.83, excise duty was payable @-10% of the retail price of footwear of all sorts the retail price of which was legibly, prominently and indelibly printed or embossed on each pair. By the subsequent SRO dated 30.6.83 footwear mechanically manufactured were made excisable but footwears manufactured on cottage industry basis, or non-mechanically, i.e. without the aid of any machinery or equipment operated by power, steam or natural gas, were, however, exempted from payment of any excise duty.