TMI Blog1981 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... t from M/s. Industrial General Products Private Limited have to be treated as purchases made "from the open market". The denial to the appellant of the benefit of the exemption provided for by the Notification was, therefore, clearly illegal. Appeal allowed. - 2201 of 1978 - - - Dated:- 3-9-1981 - P.N. Bhagwati and V. Balakrishna Eradi, JJ. [Judgment per : V. Balakrishna Eradi, J.]. - This appeal by special leave is directed against an Order dated August 3, 1978 passed by the Government of India under Section 36 of the Central Excises and Salt Act (hereinafter referred to as the Act), rejecting a Revision Petition filed by the present appellant and confirming the view taken by the Appellate Collector of Excise, Bombay, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions, by a Notification dated January 20, 1968 issued by the Government of India. The relevant part of that Notification is in the following terms : "The Central Government has exempted the excisable goods specified in Column (2) of the Table hereto annexed and falling under this Item from the whole of the duty of excise leviable thereon subject to the conditions laid down in the corresponding entries in Column (3) of the said Table. TABLE Sl. No. Description Conditions (1) (2) (3) 1. ... ... ... ... 2. ... ... ... ... 3. ... ... ... ... 4. Emulsifiers, wetting out agents, softeners and other like preparations intend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the benefit of exemption from levy of duty in respect of the manufactured products under the Notification dated January 20, 1968 inasmuch as surface active agents used in the manufacture of the emulsifiers/wetting out agents had been purchased by the appellant from the open market after the 20th day of January, 1968. This contention was rejected by the concerned Assistant Collector. He took the view that, in order to attract the exemption provided for in the aforesaid Notification, duty should actually have been paid in respect of the surface active agents used as raw-material and since the appellant had purchased the raw-material from a manufacturing unit which was exempt from the levy of excise duty for the reason that the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary 20, 1968 is simple and unambiguous. It shows that the benefit of the exemption will be available in respect of the emulsifiers/wetting out agents provided that either of the following two conditions is fulfilled : (a) Excise duty (inclusive of additional duty under Section 2A) should have been already paid in respect of the surface active agents used as raw-material in the manufacture of the emulsifiers, wetting out agents, etc. (b) The surface active agents used as raw-material for the manufacture of the emulsifiers/wetting out agents should have been purchased from the open market on or after the 20th day of January, 1968. The first of the aforementioned conditions was obviously not satisfied in the present case since the surfac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amined is, whether the surface active agents used in the manufacture of the emulsifiers were purchased "from the open market" on or after the 20th day of January, 1968 ? 9. The Assistant Collector as well as the Appellate Revisional Authorities have taken the view that the exemption granted by the Notification will get attracted only if the surface active agents used as raw-material had been already subjected to levy of duty at the primary stage. In our opinion, the said view is based on an erroneous interpretation of the provisions contained in item 4 of the Table appended to the Notification. The condition that the duty of excise should have already been paid on the raw-material (surface active agents) has no application to cases covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the Finance Act, 1910 (10 Edw. 7, c. 8) : "The market is to be the open market, as distinguished from an offer to a limited class only, such as the members of the family. The market is not necessarily an auction sale. The Section means such amount as the land might be expected to realize if offered under conditions enabling every person desirous of purchasing to come in and make an offer, and if proper steps were taken to advertise the property and let all likely purchasers know that the land is in the market for sale." We fully agree with these observations. 11. In the present case, it was open to every person desirous of purchasing the surface active agents to place orders with the manufacturing Company, namely, M/s. Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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