TMI Blog1982 (8) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... of petitioners with the materials supplied by petitioners on payment of stipulated charges. These facts have not been disputed for they are incapable of being disputed in view of the statement made by the partner of Messrs Panchal Engineering Iron Works on March 9, 1972 before the Excise authorities (See para 6 of the order passed by the Collector at Annexure `C'). Counsel for petitioners had relied on a decision of this High Court in Special Civil Application No. 1504 of 1970 before the Collector of Excise but could not do so before us since the decision in that case was rendered in favour of the assessee solely on the ground that there was no material to show that the product in question was "cooling coils and condensers" inasmuch as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditioners and other air-conditioning appliances, which are ordinarily sold or offered for sale as ready assembled units, including package type air-conditioners and evaporative type of coolers. 10% ad valorem (3) Parts of refrigeration and air-conditioning appliances and machinery, all sorts. 125% ad valorem." It was argued that on a true interpretation of Item 29A(3) cooling coils and condensers are not dutiable if the same are manufactured for use by the manufacturers and not for sale to others (petitioners had manufactured the same for use in their ice plant). In support of this argument Counsel learned heavily on Mother India Refrigeration Industries P. Ltd. v. Supdt. of Central Excise, 1980 E.L.T. 600 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-entry (3) of Item 29A takes its colour from sub-entries (1) and (2). It will be observed that the Allahabad High Court has accepted the proposition canvassed on behalf of the revenue that once an article is manufactured the object of manufacture is irrelevant. The mere manufacture of the article will attract the liability to pay excise duty because it is the event of manufacture which attracts the levy. The Allahabad High Court has rightly taken the view that this proposition is generally true under the Excise Act and there can be no quarrel with the first part of the discussion in para 9. The Allahabad High Court however, again saying so with respect, has been carried away by the fact that sub-entries (1) and (2) refers to goods which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for drawing this inference inasmuch as the caption reads as under : "Refrigeration Air-conditioning appliances." As we indicated earlier, in the first place the purpose of the caption is to provide a clue to the nature of the goods which are covered by the entry. But even otherwise if the caption is read in the manner in which it has been worded it does not justify or warrant an inference that it related to goods which are manufactured for the purpose of sale. Entry 29A adverts to goods which would fall within one or the other of the three classifications specified therein. The description of each category of goods if clearly mentioned in col. (2). So far as clause (3) is concerned the tariff description is "Parts of refrigerating and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interfere with the decision of the Excise authorities culminating in the decision of the Central Government in exercise of revisional powers in exercising our power under Article 227 provided and only provided any error apparent on the face of the record is committed. In our opinion, no error, much less an error, apparent on the face of the record, is committed. In fact, on our own we are inclined to take the same view. Even if two views are possible, the view taken by the Excise authorities would have prevailed. In our view the view taken by the excise authorities is preferable to the other view. There is therefore no scope for interfering with the order passed by the competent authorities. 2. Counsel for petitioners has called our atten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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