TMI Blog1984 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... under Tariff Items No. 18(B) and 18(B)(1) of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) whereas the ice falls under Tariff Item No. 68 of the First Schedule. There is no dispute that the two commodities manufactured by the petitioner are classified under two different Tariffs of the First Schedule to the Act. 2. The petitioner has alleged that the Central Excise Authorities are compelling it to obtain a licence for running the Ice Factory in pursuance of Notification No. 105/80-C.E. dated 19-6-1980 as amended by Notification No. 48/81-C.E. dated 1-3-1981 (annexure 'II' to the writ petition) and it is against this action that it approached this Court under Article 226 of the Constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the proper form. Rule 174A of the Rules authorises the Central Government to exempt any goods or class of goods which are wholly exempted from the duty of excise leviable thereon from the operation of rule 174. So far as the woollen and shoddy yarns manufactured by the petitioner company are concerned, the same have been exempted under rule 174A of the Rules by the Central Government. The aforesaid discussions amply prove that the woollen and shoddy yarns manufactured by the petitioner company are wholly exempted from the payment of excise duty under rule 8(1) of the Rules and are also exempted from the operation of rule 174 meaning thereby that the petitioner company is not required to obtain any licence from the Excise Authorities .for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment made by the petitioner on plant and machinery installed in the two units. From the aforesaid notification it is also evident that even the ice manufactured by the petitioner, though falls under Tariff Item No. 68 of the First Schedule, is exempted from payment of excise duty in case the clearance made by it does not exceed Rs. 30 lacs in a calender year. It is not the case of the respondents that the clearance made by the petitioner of Ice Factory has exceeded Rs. 30 lacs in a calender year and as such it is not entitled to exemption from payment of excise duty on the ice produced by it. 5. Lastly it was argued by the Additional Standing Counsel, appearing for the Union of India, that even if the ice is exempted from payment of exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner cannot be compelled to obtain a licence as contemplated under rule 174 of the Rules. In this view of the matter it must be held that the petitioner is not required to obtain a licence for manufacturing the ice in the Ice Factory. 6. In the result the writ petition succeeds and is accordingly allowed. We hereby direct the respondents not to compel the petitioner company to take a licence for manufacture of ice by it or to levy/demand any central excise duty on the ice manufactured by it if the clearance of the factory does not exceed Rs. 30 lacs. in a calender year as contemplated by the aforesaid notification. However, in the circumstances of the case parties shall bear their own costs. - - TaxTMI - TMITax - Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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