TMI Blog1975 (7) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 4 of the Act was considered. 4. The learned Counsel for the respondents has, however, contended that these decisions did not conclude the questions which arise in the petition before us. He added that there were certain contentions which did not arise in previous cases. 5. It will, therefore, be necessary to examine the ratio of these judgments in relation to the facts of this case. 6. Before we discuss the contentions raised before us in this petition, it is necessary to set out the relevant facts, which fortunately are not many and largely undisputed. 7. The petitioners, Messrs Ogale Glass Works Ltd. manufacture at Ogalewadi as well as at Pimpri among other things glass and glassware. In particular, they manufacture tumblers, jars and pressed-ware bottles of different kinds as well as glass bricks and tiles. 8. These products are charged to excise duty ad valorem under the Act and the relevant Item in the First Schedule is Item 21A, which reads as follows :- ****** 9. The petitioners say that as from 1962 they have been paying excise duty on glass and glassware under the said Item 23A, as demanded by the Excise authorities on price lists furnished by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to notice that the procedure adopted in this behalf under the relevant Excise Rules is that the petitioners filed price lists of the manufactured goods assessable to Excise duty ad valorem for the purpose of determining the value in accordance with Section 4 of the Act. These price lists are then approved by the Excise authorities from time to time and the excisable goods are then permitted to be removed from the factory where they are manufactured. 15. In order to facilitate such removal, a procedure is followed by which a current account is maintained and relevant entries made therein from time to time as the goods are removed from the factory and cash deposits are made into the current account by the petitioners. This facility is made available by the Excise authorities in order to ensure that excisable goods are removed from the factory without any delay. 16. It was in these circumstances that the Excise authorities collected from the petitioners moneys said to represent excise duties on the excisable goods produced by the petitioners at their factories at Ogalewadi and Pimpri. 17. It is the petitioners' case that as no excise duties could be levied and collected on pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncillary to the manufacture of the vegetable oil, without which, the vegetable oils could not be sold in the market. Both these contentions were rejected by this Court. ****** 50. Now, in the Petition before us the relevant Item of the First Schedule is Item 23A, which refers to glass and glassware and mentions no packing at all. It is difficult to appreciate how it can possibly be contended that the manufacture of glass and glassware is not completed before the necessity for packing it can arise, if the glass and glassware is required to be transported and delivered. It has been noticed that the excisable goods produced by the petitioners are items such as glass tumblers, jars, bottles and glass bricks. The manufacture of these articles is complete as soon as the glass and glassware which may be produced by the blow-process or mould process is cooled and, if necessary, polished. Packing such goods can never be considered to be an element of manufacture. 51. The expression "manufacture" as used in Section 2(f) is to include any process which is incidental or ancillary to the completion of a manufactured product. There can be no doubt that before any process can be regarded as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods as such without such packing or placing them in a special container. That would depend on the nature of the goods and construction of the relevant entry in the First Schedule. 59. But in the case of glass and glassware and on a reading of Item 23A of the First Schedule and other relevant provisions of the Act it is clear that the cost of packing of glassware for the purpose of its protection and transport in whatever manner can never be included in its value in the absence of any specific statutory provisions, in that behalf. 60. There is, therefore, no substance in the contention of their respondents that packing of glass and glassware is a process incidental or ancillary to the completion of its manufacture. 61. It must also be held that the cost of packing and packing materials cannot be included in the value of the excisable goods for the purpose of levy and collection of excise duty. In this view of the matter, the impugned decisions of the Assistant Collector dated the 6th of January 1973 and the 19th January, 1973 are liable to be quashed. ****** 82. When the State seeks to collect money in the guise of excise duty, although such Ievy and collection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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