Writ jurisdiction and excise levy on processed grease upheld where remedy was ineffective and manufacture attracted duty.

A writ petition was held maintainable despite an alternative statutory remedy because the surrounding circumstances showed that the superior authorities had already formed a concluded view on the levy, making the statutory route ineffective. Grease manufactured by processing duty-paid lubricating oils with fats and chemicals was held dutiable under the tariff scheme, because it satisfied the expression "any other ingredients" in Item 11B and excise is attracted on manufacture, not sale. The prior payment of duty on the input oils did not exclude levy on the finished product, especially where the scheme contemplated proforma credit and avoided double incidence of duty.

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Issues: (i) Whether the writ petition was maintainable despite the availability of an alternative statutory remedy. (ii) Whether grease manufactured from duty-paid lubricating oils attracted excise duty under Section 3 read with Item 11B and the relevant rules.

Issue (i): Whether the writ petition was maintainable despite the availability of an alternative statutory remedy.

Analysis: The existence of another remedy under the Act was not treated as an absolute bar where the surrounding circumstances indicated that the superior authorities had already formed a concluded view on the levy. In such a situation, insisting on the statutory route would serve no useful purpose and would not secure effective relief.

Conclusion: The writ petition was maintainable.

Issue (ii): Whether grease manufactured from duty-paid lubricating oils attracted excise duty under Section 3 read with Item 11B and the relevant rules.

Analysis: The product was found to be manufactured by processing duty-paid lubricating oils with fats and chemicals, so that the expression "any other ingredients" in Item 11B was satisfied. The fact that the input oils had already suffered duty did not exclude a levy on the finished product, since the scheme also provided for proforma credit and avoided double incidence of duty. Rule 173B was held applicable, and the levy was supported by the principle that excise is attracted on manufacture, not on sale.

Conclusion: The grease was dutiable and the levy was upheld.

Final Conclusion: The challenge to the excise demand failed, the rule was discharged, and the interim orders were vacated.

Ratio Decidendi: Availability of an alternative statutory remedy does not bar writ jurisdiction where the facts show a predetermined administrative stance, and grease produced by processing duty-paid lubricating oils with other ingredients remains excisable as a manufactured product under the tariff scheme.

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