TMI Blog1984 (6) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... from time to time, exempted various manufactured articles one of which was Item No. 13— "All products of the printing industry including newspapers and printed periodicals" from the whole of excise duty leviable thereon under the Act. Both sides are agreed that the said exemption of Item No. 13 continued only till 28-2-1983 and thereafter. 3. On 26-10-1979 the petitioner filed a classification list (Annexure C) in the appropriate form prescribed by the Rules before the Superintendent of Central Excise M.O.R.B., Bangalore (hereinafter referred to as the Superintendent) claiming that 'Printed Carton' manufactured by it was exempted from payment of whole of excise duty under the Act in the aforesaid notification, who on its examination accepted the same. On that basis, the petitioner cleared the goods manufactured by it without passing on the excise duty to its customers to which it was entitled to. In accepting the same, the Superintendent followed a decision rendered by Government in the matter of ALLIBHOY SHRUFALLY AND COMPANY [1978 E.L.T. (J 145)] in which it had expressly found that 'Printed Cartons' were to be treated as 'Products of printing industry' entitled for exemption u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause to the notices on which the competent authority will decide and that decision can be agitated in an appeal under the Act and that before that this court should decline to exercise its extraordinary jurisdiction. Lastly, the respondents have urged that on the ground of delay also, this Court should decline to exercise its extraordinary jurisdiction. In the very nature of things, it is appropriate to deal with these two objections urged by the respondents first, as in the event of this Court accepting either of them, the question of examining the merits will not arise. Sri K. Shivashankar Bhat, learned Central Government Senior Standing Counsel appearing for the respondents has supported both those objections. 8. The communication or demand dated 15-9-1980 (Annexure E) issued by the Superintendent, evidently on the basis of the decision rendered by Government in Vijaya Flexible Container's case, cannot be challenged in an appeal or a revision under the Act and, therefore, the question of alternative remedy against the same, does not arise. 9. So far as the show cause notices, the petitioner can show cause on the very grounds urged in this writ petition and such other groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia Limited v. Union of India and others [AIR 1977 Supreme Court 597 = 1983 E.L.T. 1566 (S.C.)], the Supreme Court reviewing the English, American and the earlier cases of the Court, has re-stated those principles in these words : "31. It is well-established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the Trade and its popular meaning should commend itself to the authority." 32. Dealing with the meaning of the term "vegetables" in the Excise Tax Act in King v. Planters Nut and Chocolate Company Limited, 1951 CLR 122 the Exchequer Court observed as follows :- "Now the statute affects nearly everyone, the producer or manufacturer, the importer, wholesaler and retailer, and finally, the consumer who, in the last analysis, pays the tax. Parliament would not suppose in an Act of this character that manufactures, producers, importers, consumers, and others who would be affected by the Act, would be botanists. The object of the Excise Tax Act is to raise revenue, and for this purpose to class substances according to the general usage and known denominations of trade. In my view, therefore, it is not the botanist's conceptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted etc. v. Union of India, (1968) 3 SCR 21=- [AIR 1968 S.C. 922 = 1978 E.L.T. (J 336)] the question that was raised related to Item 14-H in the Schedule I to the Central Excises and Salt Act, 1944, which contained compressed, "liquified or solidfied gases, inter alia, Carbon acid (carbon dioxide). This court observed as follows :- "It is also not correct to say that because the sugar manufacturer wants carbon dioxide for carbonation purpose and sets up a kiln for it that he produces carbon dioxide and not kiln gas. In fact what he produces is a mixture known both to trade and science as kiln gas, one of constituents of which is, no doubt, carbon dioxide." This Court finally observe : "The kiln gas in question therefore, is neither carbon dioxide nor compressed carbon dioxide known as such to the commercial community and therefore, cannot attract Item 4-H in the First Schedule." Similarly in Minerals and Metal Trading Corporation of India Ltd. v. Union of India - (1973) 1 SCR 997 = AIR 1978 SC 2551 = 1983 E.L T. 1542 (S.C.), this Court dealing with the meaning of the word 'Wolfram ore' again approvingly referred "not to the scientific or technical meaning but to the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h printed products are intended. Surprisingly, we can arrive at such a grouping if we ask the question : Who pays for the printed products. In answer to this question, we can divide printed products into three broad classes : (1) printed products that are completely paid for by the final customer, for example, "consumer goods and package, (2) printed products that are partially paid for by the final customer and partially by advertisers, such necessarily inspected individually; inspection can also be done by a method of planned semling. If a job has trouble spots of its own, these are particularly watched during inspection; otherwise inspecting is concerned with the general quality level of the work. Jacketing, Jacketing can be done either by hand or by a jacketing machine. Depending on the weight of the paper on which they are printed, jackets may need prescoring before they can be put over the book covers by hand jacketing. In machine jacketing, the books are loaded in a hopper and the jackets in a continuous feeder. The machine forms the jacket into the required shape and applies it to the book. Some jacketing machines can produce up to 4000 units per hour. In fully automati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy, a carton of frozen food, a can of beer, or a plastic bag of vegetables is bought. Box tops, labels, neatsealed plastics, lithographed metal cans, paper folding boxes, and many similar items belong in this group of package printing which has experience as unprecedented growth in recent times". The treatise "Printing Office Procedure" published by the 'British Industries Federation', II Edition treating 'printed cartons' as falling within the meaning of the term 'printing industry' states thus : "Although the typical printer handles a wide variety of work (he is said to be a 'general' or jobbing printer) there is a trend towards specialisation. Some firms concentrate on books, and others on periodicals, printed cartons and stationery, while some undertake services to the trade such as setting type for other printers to use." X X X X There are several employers' organisations connected with printing in some way. The Newspaper Publishers' Association represents the national daily newspapers ; the Newspaper Society covers provincial daily and evening and all other newspapers, including the London suburban newspapers ; and the British Printing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illegal and calls for the interference of this Court, under Article 226 of the Constitution of India. 21. On the above conclusion, it is unnecessary to examine all other grounds urged by the petitioner in support of the claim or the defence pleaded against them by the respondent. I, therefore, leave open them without expressing any opinion. 22. In the light of my above discussion, I make the following orders and directions : (a) I dismiss this writ petition so far as petitioner-2 only. (b) I quash the order dated 15-9-1980 (Annexure-E) show cause notices No. 13084/80, dated 24-9-1980 (Annexure-G) and No. G. 1302/80 dated 24-9-1980 (Annexure-H) issued by the Superintendent of Central Excise, Range 'BB' II Dn., Bangalore. (c) I issue a writ in the nature of mandamus to the respondents to refund the excise duty collected from the petitioner on the 'printed cartons' for the period for which the exemption was in force on that manufactured article, with all such expendition as is possible in the circumstances of the case and in any event within a period of 4 months from the date of receipt of the order of this Court. But, in settling such refunds, the respondents are free to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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