Mixed ground masalas treated as manufactured goods under residuary excise entry; food-product exemption denied.

Writ jurisdiction was held maintainable despite statutory appeal and revision because the challenge involved constitutional validity and alleged violation of fundamental rights, which departmental remedies could not effectively decide. Mixed ground masalas were treated as commercially distinct, marketable goods brought into existence by grinding and mixing spices, so they amounted to manufacture and fell within the residuary excise entry under Tariff Item 68. The exemption for food products or food preparations did not extend to masalas merely because they are used in food, so the notification was inapplicable and the excise levy was upheld.

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Issues: (i) whether the writ petitions were maintainable despite the availability of statutory appeal and revision, (ii) whether mixed ground masalas were goods manufactured in a factory and liable to excise duty under Tariff Item 68, and (iii) whether mixed ground masalas were exempt as food products or food preparations under Notification No. 55/75-C.E. dated 01.03.1975.

Issue (i): Whether the writ petitions were maintainable despite the availability of statutory appeal and revision.

Analysis: The existence of statutory remedies did not bar writ jurisdiction where the challenge raised questions touching constitutional validity and alleged violation of fundamental rights. Such issues could not be effectively decided by the departmental appellate or revisional authorities under the Act.

Conclusion: The writ petitions were maintainable.

Issue (ii): Whether mixed ground masalas were goods manufactured in a factory and liable to excise duty under Tariff Item 68.

Analysis: Excise under Section 3 of the Act attaches to excisable goods produced or manufactured in India and specified in the First Schedule. Tariff Item 68 was a residuary entry intended to cover goods not elsewhere specified. Mixed ground masalas were commercially known commodities, capable of being bought and sold, and the process of grinding and mixing different spices brought into existence a new marketable commodity with a distinct name, character and use. They were not elsewhere specified in the Schedule and the process amounted to manufacture.

Conclusion: Mixed ground masalas fell within Tariff Item 68 and were liable to excise duty.

Issue (iii): Whether mixed ground masalas were exempt as food products or food preparations under Notification No. 55/75-C.E. dated 01.03.1975.

Analysis: The exemption covered all kinds of food products and food preparations. Spices used for flavouring or as ingredients in food were not, by that reason alone, food products or food preparations. Mixed ground masalas did not answer that description and the exemption notification could not be extended to them.

Conclusion: Mixed ground masalas were not entitled to exemption under the notification.

Final Conclusion: The assessment to excise duty on mixed ground masalas was upheld and the challenge to the levy failed; the seizure-related challenge required no further order, and the petitions were disposed of against the petitioners.

Ratio Decidendi: A residuary excise entry can validly apply to a commercially known commodity that is not elsewhere specified and is brought into existence by a process of manufacture, and an exemption for food products or food preparations cannot be extended to spices merely because they are used in preparing food.

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