TMI Blog1974 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... ad required them to apply for the licence for manufacture of these domestic flour mills. The authorities had asked these two petitioners to include in the price list the value of the electric motor. However, finally, the authorities took a view that this domestic grinders were non-excisable under entry 33C as they had no inbulit electric power motor. Therefore, so far as the petitioners manufacturers were concerned, the aforesaid entry 33C was not attracted. So far as other similar products were concerned, even the Central Government had in the order, dated May 31, 1972 taken this view. The Government found the manufacturer's contention justified that such domestic appliances which had no inbulit electric motor would not attract Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for this appliance, it was clearly a domestic appliance and it was advertised as such domestic appliances. It was further pointed out that the design in the unit was such that the motor was specially fitted to the unit, and therefore, such grinders were liable to be assessed as domestic electrical appliances under Item 33C of the Tariff Schedule. Accordingly even the first petitioner in whose case the Collectorate had taken a final decision that these domestic flour mills were non-excisable under entry 33C were also required to pay duty under this item. The same is the case of the third petitioners who are fresh manufacturers. Therefore, all these three petitioners have challenged the aforesaid levy under Item 33C. **** 3. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33C, duty under this item would not be attracted. If, therefore, the manufacturer has only produced domestic appliance which can by properly fitting into it a separate electric motor be converted into a domestic electric grinder, excise duty in question would not be attracted. The excise duty falls on the manufacture or production of the goods in question. It is not a duty on the sales, therefore, whatever may have happened at the stage of sale, as in this case, that a particular manufacturer at the time of sales is supplying to the customer this request electric unit manufactured by some other manufacturer or the customer at his place gets the electric motor fitted into this unit, it is obvious that what was manufactured by the petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Steel Ltd. v. Union of India [1978 E.L.T. (J 355)] in the majority view, it was in terms pointed out that it was permissible to look at notification issued by the Central Government which had given reliefs of various kinds. Even in the dissenting judgment of his Lordship Hegde J. the same view is taken after referring to the settled legal position. At page 1186 it was pointed out that it was clear that several Judges in England had referred to the subordinate legislation made under a statute for the purpose of interpreting that statute, though for the limited purpose of knowing how the department which was entrusted with the task of implementing that statute, had understood that statute. In the case of fiscal statutes, it might not be ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the statute. Here we are not reading a trade notice for the purpose of controlling the plain meaning of the tariff entry. We are only read at it as even the Government construction fits in and support our prima facie construction the relevant entry, when it is read with the entire exemption scheme. As earlier pointed out by us, the excise levy is on the production or manufacture and is not a sales tax levy. Therefore, what is taxed is production or manufacture and in the article at the stage of production or manufacture was an unassembled article or was not completely interpreted whole domestic electrical appliance, it is obvious that the excise levy under the relevant entry 33C would not be attracted. Keeping in mind this relevant schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers wanted an electric motor to be fitted by purchasing a separate electric motor by a different manufacturer that the electrical part was added in this mechanism. Therefore, the electric motor was a totally separate part which was not manufactured by these manufacturers. It had to be fitted into the manufactured item of the petitioners. It is wholly immaterial that at the stage of sale, the petitioners at the request of the customers fit an electric motor or leave it to the customers to get electric motor remitted into this unit. That would not make the article in its original state excisable as manufactured by the petitioners. In that view of the matter the entire levy under article 33C was wholly illegal and ultra vires. In that view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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