EMPIRE INDUSTRIES LIMITED & ORS. ETC. versus UNION OF INDIA & ORS. ETC.

EMPIRE INDUSTRIES LIMITED & ORS. ETC. versus UNION OF INDIA & ORS. ETC.

The processes of bleaching, dyeing, printing, and finishing of cotton, woolen, or man-made fabrics, as clarified by the Amending Act VI of 1980, amount to 'manufacture' and attract excise duty under Section 4 of the Central Excises and Salt Act, 1944. The retrospective amendment is constitutionally valid and falls within Parliament's legislative competence under Entry 84 or, alternatively, Entry 97 of List I, Seventh Schedule. The legislation does not violate Articles 14 or 19(1)(g) of the Constitution.

Parties
Petitioner: Empire Industries Limited & Ors. Etc.; Respondent: Union of India & Ors. Etc.
Jurisdiction
India
Judgment Date
06 May 1985
Procedural Posture
Writ Petitions and Civil Appeals / Final Supreme Court Judgment
Outcome
Petitions dismissed; Revenue appeals allowed with costs.
Legal Topics
Central Excise and Salt Act, Definition of Manufacture, Legislative Competency, Retrospective Legislation, Valuation Under Excise Law, Constitutional Validity of Fiscal Statutes
Tax Law Constitutional Law Central Excise and Salt Act Definition of Manufacture Legislative Competency Retrospective Legislation Valuation Under Excise Law Constitutional Validity of Fiscal Statutes

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Parties

Empire Industries Limited & Ors. Etc.

Petitioner

Union of India & Ors. Etc.

Respondent

Procedural Posture

Writ Petitions and Civil Appeals / Final Supreme Court Judgment

Legal Issues

  1. 1 Whether processes like bleaching, dyeing, printing, water-proofing etc. of cotton/woolen/man-made fabrics amount to 'manufacture' under the Central Excises and Salt Act as it stood prior to the Amending Act of 1980
  2. 2 Whether the Amending Act VI of 1980 and levy of excise duty is valid under Entry 84 or Entry 97 of List I, Seventh Schedule to the Constitution
  3. 3 Whether the impugned Act violates Articles 14 or 19(1)(g) of the Constitution

Ratio Decidendi

The processes of bleaching, dyeing, printing, and finishing of cotton, woolen, or man-made fabrics, as clarified by the Amending Act VI of 1980, amount to 'manufacture' and attract excise duty under Section 4 of the Central Excises and Salt Act, 1944. The retrospective amendment is constitutionally valid and falls within Parliament's legislative competence under Entry 84 or, alternatively, Entry 97 of List I, Seventh Schedule. The legislation does not violate Articles 14 or 19(1)(g) of the Constitution.

Court Disposition

Petitions dismissed; Revenue appeals allowed with costs.

Orders

  • Arrears of duties to be paid forthwith; future duties to be paid at clearance of goods.
  • Interim orders, if any, vacated.