UNION OF INDIA versus HINDU UNDIVIDED FAMILY BUSINESS KNOWN AS RAMLAL MANSUKHRAI, REWARI & ANR.

UNION OF INDIA versus HINDU UNDIVIDED FAMILY BUSINESS KNOWN AS RAMLAL MANSUKHRAI, REWARI & ANR.

The conversion of billets into circles constitutes manufacture within the meaning of section 2(f) of the Act, and uncut circles are included in 'circles in any form or size' as per Item 26A(2); therefore, excise duty is validly levied on uncut circles.

Parties
Appellant: Union of India; Respondent No.1: Hindu Undivided Family Business known as Ramlal Mansukhrai, Rewari; Respondent No.2: Anr.
Jurisdiction
India
Judgment Date
21 August 1970
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated July 25, 1967 of Punjab and Haryana High Court in Regular Second Appeal No. 910 of 1965
Outcome
Appeal allowed; suit of the respondent dismissed.
Legal Topics
Definition of Manufacture Under Central Excise & Salt Act, Levy of Excise Duty on Circles in Any Form or Size, Interpretation of Item 26 A(2) of First Schedule
Excise Law Definition of Manufacture Under Central Excise & Salt Act Levy of Excise Duty on Circles in Any Form or Size Interpretation of Item 26 A(2) of First Schedule

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Parties

Union of India

Appellant

Hindu Undivided Family Business known as Ramlal Mansukhrai, Rewari

Respondent No.1

Anr.

Respondent No.2

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated July 25, 1967 of Punjab and Haryana High Court in Regular Second Appeal No. 910 of 1965

Legal Issues

  1. 1 Whether uncut circles prepared from billets are liable to excise duty under Item 26A(2) of the First Schedule to the Central Excises and Salt Act, 1944
  2. 2 Whether conversion of billets into circles amounts to 'manufacture' as defined in section 2(f) of the Act

Ratio Decidendi

The conversion of billets into circles constitutes manufacture within the meaning of section 2(f) of the Act, and uncut circles are included in 'circles in any form or size' as per Item 26A(2); therefore, excise duty is validly levied on uncut circles.

Court Disposition

Appeal allowed; suit of the respondent dismissed.

Orders

  • Costs of appeal of respondent I to be borne by appellant