TMI Blog1964 (3) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... r oil mills, gets the oil manufactured thereon payment of the necessary manufacturing charges and takes the oil so manufactured and sells the same. These other oil mills are quite independent of the petitioners and of the petitioner oil mills. The vegetable oil manufactured by these other oil mills out of oil seeds supplied by the petitioner was allowed to be removed by respondents without payment of any excise duty since the total quantity of oils produced by each one of these oil mills was within the exemption limit of 75 tons. Subsequently the respondent No. 3 appears to have taken the view that the vegetable non-essential oil manufactured by these other oil mills out of oil seeds supplied by the petitioner was also liable to excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the respondents, that since there was alternative remedy by way of an appeal, though the appeal could only be heard after the entire excise duty demanded had been deposited, this court should not entertain this writ petition. I cannot agree with this submission in the present case. The case of the petitioner is that he is not liable to pay the excise duty demanded and that the illegal demand and detention of its vegetable oil infringed its fundamental right under Article 19(1)(g) of the Constitution to carry on its trade and business of selling vegetable oil. A petition under Article 226 of the Constitution wherein there is a bona fide complaint of infringement of fundamental right cannot be thrown out on the ground of an alter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on Section 2(f) define the work "manufacture" in relation to tobacco and salt and then provides as follows :- "the word `manufacture' shall he construed accordingly and shall include not only a person who employs hired labour in the production/manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account if those are intended for sale." Two things have to be noticed in this definition. The first is that a person who manufactures excisable goods throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equires every such manufacturer to give notice in writing to the Collector of his intention to stop or resume the production of such goods. Clearly the petitioner was not required to give these notices in respect of the oil mills where the oil in dispute was manufactured, but it was the owners of those oil mills who were required to give the notices. Rule 44 empowers the Collector to require a manufacturer to make a prior declaration of the factory premises and equipment. The petitioner could not have been required to make any such declaration in respect of these other oil mills. All these provisions lead to the conclusion that it is the owner or occupier of the factory or oil mill where the vegetable non-essential oil is manufactured who i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etable oils must be accounted for in the accounts of production and deliveries of the oil millers and be subjected to the usual checks besides payment of duty leviable after the exempted quantities of 10 tons in March and first 125 tons on and after 1st April have been exhausted. 6. This makes it clear that vegetable oil manufactured by the owner of a factory even out of oilseeds supplied by some one other than the owner of the factory is oil manufactured by the factory and the factory is liable to pay excise duty thereon. If it is the owner of the factory which manufactures the oil who is to be treated as the manufacturer of the oil, it follows that the person who supplies the oilseeds cannot be the manufacturer. This strengthens the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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