1991 (2) TMI 123

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....t petitions are manufacturers of aerated water and soft drinks under brand names. The products are liable for excise duty under the Central Excises and Salt Act, 1944 (hereinafter called 'the Act'). Prior to 1-3-1986, duty was leviable at the rates mentioned in the First Schedule of the Act itself and the subject goods fell under Item I(d) of the First Schedule, of Notification No. 201 of 1979 dat....

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.... modified form in vogue in the western countries was introduced at the level of the manufacture and was called MODVAT Scheme. In December, 1985, the first respondent introduced a long term fiscal policy which for the first time included the proposal to introduce a modified system of value added tax or MODVAT as is popularly called. The sum and substance of this scheme is to alleviate the cascading....

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....e MODVAT Rules. Therefore, from 1-3-1987, the petitioners availed of the MODVAT Rules. With effect from 9-9-1987, the first respondent issued Notification No. 203/87 thereby excluding Heading 22.01 and 22.02 of the Central Excise Tariff from the benefit of MODVAT Rules. The notification was made to take effect from 1-10-1987. The writ petitions challenge the validity of this Notification No. 203/8....

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....ia and (5) Article 19(6) of the Constitution of India does not save the notification. 4. It is not necessary to go into the merits of the above contentions because all of them are covered by judgments of various courts in India. Mr. K. Jayachandran, learned Counsel for the respondents, relies on the decision in Black Diamond Beverages Ltd. v. Union of India [1988 (36) E.L.T. 225 (Cal.)]. The Ca....