UNION OF INDIA AND ORS. versus GARWARE NYLONS LTD. ETC.

UNION OF INDIA AND ORS. versus GARWARE NYLONS LTD. ETC.

Evidence led showed that nylon twine manufactured by the assessees has been treated as a kind of nylon yarn by the people conversant with the trade; it is commonly considered as nylon yarn and therefore falls within Item 18 of the First Schedule to the Central Excise and Salt Act, 1944. The Revenue failed to disprove this or establish the contrary.

Parties
Appellant: Union of India and Ors.; Respondent: Garware Nylons Ltd. Etc.
Jurisdiction
India
Judgment Date
09 September 1996
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeals dismissed
Legal Topics
Excise Classification, Burden of Proof, Commercial Parlance in Statutory Interpretation
Tax Law Commercial Law Excise Classification Burden of Proof Commercial Parlance in Statutory Interpretation

Case Brief

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Parties

Union of India and Ors.

Appellant

Garware Nylons Ltd. Etc.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether Nylon Twine can be considered as Nylon Yarn under Item 18 of the First Schedule to the Central Excise and Salt Act, 1944
  2. 2 Whether excise duty collected under Item 68 was justified

Ratio Decidendi

Evidence led showed that nylon twine manufactured by the assessees has been treated as a kind of nylon yarn by the people conversant with the trade; it is commonly considered as nylon yarn and therefore falls within Item 18 of the First Schedule to the Central Excise and Salt Act, 1944. The Revenue failed to disprove this or establish the contrary.

Court Disposition

appeals dismissed

Orders

  • Judgments appealed against are affirmed.
  • Appeals dismissed with costs including counsel's fee of Rs. 5,000 in each case.