TaxTMI 
TaxTMI 
1987 (11) TMI 93
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....ourse, there are also integrated steel plants wherein the manufacturing process commences with iron ore and ends with ultimate marketable products. 2.Steel ingots are subject to excise duty at the rate prescribed in Item 25 of the Schedule to the Central Excises and Salt Act, 1944. 3.Two notifications were issued by the Central Government providing a certain facility and a certain exemption with reference to steel ingots. One notification is Notification No. 150/83-C.E., dated 13-5-1983, as amended in Notification No. 199/83, dated 1-8-1983. This notification has been issued under Rule 56AA. It provides that in respect of all excisable goods of the description specified in Column 3 of Tables 'A' and 'B' annexed thereto and falling under s....
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....teel ingots produced by it are not produced "with the aid of electric furnace". According to the petitioner, this results in a discriminatory treatment. The petitioner submits that the classification of mini steel plants with reference to, and on the basis of the process of manufacture of steel ingots, is unreasonable and unrelated to the object underlying the notifications. Shri T. Anantha Babu, the learned Counsel for the petitioner, submits that the object underlying the two sets of notifications - one providing a certain concession and the other providing partial exemption in the matter of levy of duty - are designed to encourage the steel mills, particularly the mini steel plants, and the notifications mention the particular process of....
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....ment either to produce for our perusal the file relating to the said notifications, or file an additional affidavit explaining the reasons and purpose behind the said condition. For this purpose we adjourned the matter for 10 days. But, the learned Standing Counsel for the Central Government could neither produce the files relating to the said notifications, nor could he file an additional affidavit explaining the reasons for imposing such a condition. The notification issued under Rule 56AA says that the concession provided thereunder shall be available "provided such goods are manufactured in an integrated ore-based steel plant or in a factory with the aid of electric furnace". Similarly, the exemption notification issued under Rule 8(1) ....
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....earned Counsel may be correct, or may not be correct. The fact, remains that there is no intelligible basis for classifying the factories producing steel ingots on the basis of, and with reference to the process of manufacture, when they produce identical goods and when both are mini steel plants. It is not stated that the steel plants manufacturing steel ingots with the aid of electric furnace are situated differently and require encouragement while other steel plants not employing that process do not require such encouragement. Further, if the object is to encourage mini steel plants, we are unable to see any connection between the said classification and the said object. The petitioner's factory is also a mini steel plant, and in the abs....