Karnataka Court September 1967 Judgments

State of Mysore by General Manager, Mysore Implements Factory Vs. Unio ...

Court: Karnataka

Reported in: AIR1968Kant237; AIR1968Mys237; (1968)1MysLJ178

Somnath Iyer, J.(1) This is an unusual case in which the State Government is the applicant for our writs. It asks us to quash a demand for the payment of excise duty on agricultural implements manufactured in its factory known as the Mysore Implements Factory.(2) Section 3 of the Central Excises and Salt Act, 1944, which will be referred to as the Excise Act, imposed excise duty on the excisable goods enumerated in Schedule I to that Act. By finance Act XX of 1962, item 26-AA was added to that schedule. Again, by Finance Act XIII of 1963, another clause was added to item 26-AA.(3) Item 26-AA was added to the first schedule with effect from April 23, 1962 and the new clause introduced into it became effective from April 28, 1963.(4) On July 21, 1962, the Inspector of Central Excise called upon the State Government to pay excise duty amounting to Rs. 24,65-91 P. on the agricultural implements manufactured in its factory, after April 23, 1962. The foundation of the demand was clause (i) o...