TMI Blog1981 (11) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners are manufacturers of safety matches under relevant licences issued under the Central Excises and Salt Act, 1944. By Notification No. 154 of 1975 dated 3rd June, 1975 issued under Rule 8 of the Central Excise Rules, 1944, the Central Government exempted matches in or in relation to the manufacture of which no process is ordinarily carried on with the aid of power and cleared by any manufacturer for home consumption, from so much of the duty of excise leviable thereon as is in excess of Rs. 4.30 per gross boxes of 50 matches each. But there is a proviso to this notification which reads that in the case of matches referred to in category 2 and cleared for home consumption during a financial year by a manufacturer from a factory which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commission directly or through such agencies as are stipulated from time to time, 75 bundles (seventy-five bundles) per month out of their production affixing such labels as are decided upon from time to time by the Commission at a price to be fixed by the Commission. All these petitioners were supplying the Commission 75 bundles per month with the labels decided upon by the Commission as required by the conditions and there is no dispute about the same. It appears that the Superintendent of Central Excise reported to the first respondent, that some of the match units, a list of which was furnished to the Commission, are situated in the same compound and the licensees are relatives. The labels used by these units were also common labels. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice along with the application for approval of labels owned by the Commission. Yours faithfully, Sd./- N.C. Agarwal, Assistant Director (Match)" As may be seen from the notice, which is termed as an order here, the Commission required the petitioners to supply the entire production to the Khadi and Village Industries Commission with effect from 1-1-1980 using the labels owned by the Khadi and Village Industries Commission, at the rate and specifications to be fixed by the Commission from time to time. The contention of the petitioners in this case is that the Commission has no jurisdiction to impose these conditions and the notice is illegal. We think that the learned Counsel for the petitioners are well-founded in this contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cottage unit, or which is a member of a co-operative society (including a marketing or service industrial co-operative society but excluding a co-operative bank) registered under any law relating to cooperative societies for the time being in force and assisting exclusively manufacturers of such matches; Provided further that the matches are sold or marketed through the Khadi and Village Industries Commission or a co-operative society (including a marketing or service industrial co-operative society but excluding a co-operative bank) aforesaid or an agency established by a State Government". The second proviso brings the need for selling the matches through the Commission or a co-operative society or an agency established by the State G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he circular dated 9th January 1980 issued by the Commission which reads as under:- "In accordance with the advice of Government of India, the Khadi and Village Industries Commission, has decided to procure with immediate effect 100% matches produced by the Cottage Match Units to whom the Commission has issued bona fide certificates (Contd..... 12) 2. All the certified Cottage Match Units are therefore advised to hand over their entire production to the Commission's procurement centres through their respective Associations/Institutions. 3. With this decision of the Commission no matches produced by the Certified Cottage Match units shall be marketed by the units directly outside the procurement channel of the Commission. Sd/- Direc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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