1962 JTR(SC) 82
1963 AIR(SC) 98 ; 1978 1 ELT 311 ; 1963 1 SCA 278 ; 1963 SCD 91 ; 1962 Supp3 SCR 481 ; 1963 KHC 449
SUPREME COURT OF INDIA
28th February, 1962.
B.P. SINHA, C.J.I., J.L. KAPUR, M. HIDAYATULLAH, J.C. SHAH AND J.R. MUDHOLKAR, JJ.
Orient Weaving Mills (P) Ltd. and another, Petitioners
Versus
Union of India and others, Respondents.
Petition No. 110 of 1961
Advocates appeared:
Mr. A. V. Viswanatha Sastri, Senior Advocate, (Mr. R. Gopalakrishnan, Advocate, with him), for Petitioners; Mr. K. N. Rajagopal Sastri, Senior Advocate, (M/s. P. K Chatterjee and P. D. Menon, Advocates with him), for Respondents.
Challenge to the constitutionality of the Central Excises and Salt Act, 1944, and Rule 8 of the Central Excise Rules, 1944, regarding the imposition of excise duty on cotton fabrics.
Act
Referred
:CENTRAL EXCISE RULES
: R.8(1)
CONSTITUTION OF INDIA: Art.14, Art.48, Art.19, Art.245
(A) Constitution of India - Article 32 - Central Excises and Salt Act, 1944 - Central Excise Rules, 1944 (1960) - Rule 8 - Challenge to the constitutionality of certain provisions and notifications.
Facts of the case:
A company operating a weaving mill producing cotton fabrics has been sustaining losses since the commencement of production. The company and its director challenge the constitutionality of specific provisions of the excise act and rules, citing heavy taxation and adverse circumstances.
Issues: Whether the provisions of the Central Excises and Salt Act, read with Rule 8 of the Central Excise Rules and relevant notifications, are constitutional.
Findings of Court:
Not provided in the text.
Ratio Decidendi: Not provided in the text.
Result: Not provided in the text.
Facts of the case:
A company operating a weaving mill producing cotton fabrics has been sustaining losses since the commencement of production. The company and its director challenge the constitutionality of specific provisions of the excise act and rules, citing heavy taxation and adverse circumstances.
Issues: Whether the provisions of the Central Excises and Salt Act, read with Rule 8 of the Central Excise Rules and relevant notifications, are constitutional.
Findings of Court:
Not provided in the text.
Ratio Decidendi: Not provided in the text.
Result: Not provided in the text.
A.V.VISHWANATHA SASTRI, F.K.CHATTERJI, K.N.RAJAGOPAL SASTRI, P.D.MENON, R.GOPAL KRISHNAN
Judgment:
SINHA, C.J.I. : By this petition, under Art. 32 of the Constitution, the petitioners challenge the constitutionality of certain provisions of the Central Excises and Salt Act (1 of 1944) (which will be referred in the course of this judgment as the Act), read with R. 8 of the Central Excise Rules, 1944 (1960) and the notifications thereunder, to be hereinafter set out. The first petitioner is the Orient Weaving Mills Private Ltd. (which will be termed hereinafter as the Company), and the second petitioner is a director of the Company. The respondents to the petition are (1) Union of India, through the Secretary to Government of India, Ministry of Finance (Department of Revenue), New Delhi (2) Secretary, Central Board of Revenue, New Delhi, (3) Superintendent, Central Excise, Cuttack, (4) Collector, Central Excise, Calcutta, (5) Board of Directors, Madhunagar Powerloom Weavers Co-operative Society Ltd., through its President (to be hereinafter referred to as the Society.)
2. The petition is founded on the following allegations. The Company is incorporated under the Indian Companies Act, 1913, with its head office at Nayabazar, Cuttack. The second petitioner is the director of the Company, which-runs a weaving mill at Nayabazar in Cuttack. There are 160 looms operating in the mill, and nearly 300 employees are employed in the factory, which produces, on the average, about 45 lakh yards of cloth (41/2 million yards). The paid-up-capital of the company is Rs. 7,10,000, divided into 7,100 shares of the value of Rs. 100 each. It has 8 directors, including a representative of the Government of Orissa. The Company commenced production on October 1, 1955, and has been sustaining losses ever since it started functioning "due to adverse circumstances in the State of Orissa and due to the heavy taxation and duties." Ever since the Company started production, it has been paying excise duty - Rs. 2,16,670 for the year 1958-59, Rs. 1,82,529 for the year 1959-60 and Rs. 2,15,500 for the year 1960-61. "Cotton fabrics" is one of the items in the first schedule
For Citation : AIR 1963 SC 98