CASE NO.: Appeal (civil) 753 of 1988 PETITIONER: THE UNION OF INDIA AND ORS. RESPONDENT: M/S.J.M.A. INDUSTRIES DATE OF JUDGMENT: 28/03/1995 BENCH: R.M. SAHAI & S.B. MAJMUDAR JUDGMENT:
JUDGMENT
1995 (3) SCR 19
The following Order of the Court was delivered :
How should the expression ‘Electric Lighting Fittings’ in Tariff Item 61 be
interpreted is the short question that arises for consideration in this
appeal directed against the judgment and order of the Delhi High Court
allowing the writ petition filed under Article 226 of the Constitution of
India and quashing the notice issued to the appellant for classifying the
electric switches, dippers and bulb holders manufactured by it for cars
under Tariff Item 61.
The respondent is engaged in the business of manufacturing various parts
and accessories for motor vehicles. It filed a writ petition in the High
Court challenging the notice issued by the Department for levying duty on
the item manufactured by the respondent under Tariff Item 61. The High
Court after considering the matter held that in common parlance the goods
manufactured by the respondent cannot be construed to be covered under
Tariff Item, 61 as the respondent was a manufacturer solely of motor
vehicle parts.
Tariff Item 34A in Schedule I to the Central Excises & Salt Act, 1944 has
been amended from time to time. The rate of the duty levied under the item
on parts and accessories not elsewhere specified of motor vehicles and
tractors including trailers was 20% ad valorem. This notification was
amended in 1979. The amendment specified various goods to be parts and
accessories of motor vehicles. The earlier entry read as under :
“Parts and accessories not elsewhere specified of motor vehicles and
tractors including trailers”.
The amended entry since 1979 reads as under :
“Parts and accessories of motor vehicles and tractors including trailors,
the following, namely”.
The result of the amendment and the addition of the words ‘following
namely’, was that apart from the goods specified in Item No. 34A which were
15 in number, the other items stood excluded from levy of excise duty. The
entry mentions 15 items, but it does not mention switches, dipper switches
or bulb holders. Therefore, all those articles, including the one mentioned
above if they are part of parts and accessories of motor vehicles, then
they were not liable to pay any duty on it.
Tariff Item 61 reads as under:
61. ELECTRIC LIGHTING FITTINGS
Tariff Item No. Description of goods Rates of duty
61 Electric lighting Fittings namely : 20% ad valorem (Basic)
Switches, plugs and sockets, all kinds; chokes and starters for
flourescent tubes. 10% of the basic duty chargeable [Special
Excise]
The respondent manufactured light switches, dipper switches and bulb
holders exclusively for use in motor vehicles. The classification list of
the respondent was approved by the Department. It was paying duty under
Item No. 68. In 1981, however, when Tariff Item No. 61 was introduced, the
respondent was directed to obtain the requisite licence for the manufacture
of the said goods under the aforesaid item. The question, therefore, is
whether the goods manufactured by the respondent for use in motor vehicles
can be said to be covered in Tariff Item 61. The Item has been extracted
above. The expression ‘electric lighting fittings, is normally understood
in context with the household. The dippers and switches manufactured for
use in case are not understood either in the trade circle or in common
parlance as electric lighting fittings. It is true that the words
‘switches, plugs and sockets’ have been widened by use of the expression
‘all kinds’, but the words used have to take colour from the genesis of the
entry, that is, electric lighting fittings. Since the main or the principal
entry deals with electric lighting fittings in the households, the switches
and dippers manufactured by the respondent for exclusive use in motor
vehicles cannot be said to be covered in the aforesaid entry. The view
taken by the High Court, therefore, appears to be .well founded in law.
In the result, this appeal fails and is dismissed. But there shall be no
order as to costs.
Appeal dismissed.