Judges : M.RAMACHANDRAN
Cochin Refineries Ltd. - Appellant
Versus
State of Kerala - Respondent
Case No : OP. No. 13965 of 1995
Decided On : 02/13/2002
Advocates Appeared :
For the Petitioner: Antony Dominic, Advocate. For the Respondent:Viju Thomas (Govt. Pleader).
Standards of Weights and Measures (Enforcement) Act 1985 – Section 24 – Kerala Standards of Weights and Measures (Enforcement) Rules 1992 – Rule 14(1) – Storage – Verfication – Held, Court hold that R. 14(1) of the Kerala Standards of Weights and Measures (Enforcement) Rules, 1992, which provides for verification and calibration of storage does not suffer from the disabilities attributed to it. – Rule has inherited relevance from S. 24 and the definition of words incorporated in the section. – Challenge of the petitioners consequently fail. – Court do not see merit in the submission that it did not serve any purpose whatsoever towards objective of the enactment and proceedings were misconceived. – If it was a measure, answering the definition, S. 24 had to apply. – Storage tanks, which are used perhaps only internally for storage purposes and for transferring commodities while they are undergoing processing, are intended to come within the definition.– To read into it that measurement was to guarantee its accuracy vis-a-vis the consumer is impermissible – When provision of the enactment is clear and not ambiguous, – Court has no business to interpolate words or restrict meanings by any purposive interpretation. – Act was definitely not one confined to objective of safeguarding interest of consumers alone – It had a larger perspective. – It is not disputed that with reference to the storage tanks, where the end products such as petrol and high speed diesel are stored for measuring it out to the customers, either through tanker lorries or the tanker wagons, calibration is essential. – If that be so the same equally applies to other tanks as well. – Being a commodity assessable to Central Excise, every litre of the raw material and waste and end products are always to be accurately accounted for. – Inconvenience or cumbersome procedures cannot be successfully pleaded to get over liability as such-clause (ii) of S. 2(z) of Standards Act deals with the situation of assessment of duty as well.
M. Ramachandran, J.
O.P. No. 13965 of 1995 had been filed by Cochin Refineries Limited, Which is a Government company. The other two Original Petitions have been filed by Bharat Petroleum Corporation Limited, (BPC) which also is an enterprise of the Government of India. Notices issued by the Department of Legal Metrology are under challenge. O.P. Nos. 13965 and 15818 of 1995 challenge the directions for calibrating the storage tanks installed by the petitioners.
2. O.P. No. 27852 of 2000 has been filed by BPC for a declaration that the flow-meters installed by them at the Loading Gantries, in its Irimbanam Installation, are not required to be calibrated under the Standards of Weights and Measures (Enforcement) Act, 1985 and the Rules thereunder. The impact of the Standards of Weights and Measurements Act, 1976, Enforcement Act, 1985 and Rules framed thereunder comes to be decided in these set of writ petitions. I may deal with the issue of storage tanks, in the first instance, and later on deal with the issue concerning the flow meters.
3. Cochin Refineries Limited is engaged in the manufacture of High Speed Diesel, Petrol, Naphta, raw kerosene, Asphalt, Low Sulphur Heavy Stock, Furnace Oil, LPG and other petroleum products. For the purposes of (1) storage of raw materials imported and pumped into the factory premises, (2) for storage of intermediate products after the first processing and (3) for storing the finished products, facilities in the form of Storage Tanks with capacity ranging from 16000 kilo litres 65000 kilo litres have been installed. All of them may not be used at all times. From the storage tanks, where finished products are kept, the products are removed either by tanker lorries or by pipelines or by Railway Wagons. It has been stated that six tanks are used for storing raw materials. 14 tanks are used for storing intermediate products and 16 storage tanks are intended for storage of other petroleum products. The balance are either kept idle or used for storage of finished products, the other finished products, namely petroleum and High Speed Diesel.
4. Tank No. 70 in the Refinery is used for the purpose of storage of motor spirit. The petitioner-company requested the Legal Metrology Department to witness Calibration, by letter dated 24-10-1994. By Ext. P1 dated 25-10-1994, the Department directed that in view of the provisions of the Enforcement Act and rules, which had come into effect from 25-7-1992, the specification and calibration was required to be done as per Schedule IX A of Part II. The storage tanks were to be recalibrated once in five years and in so far as that the petitioner-company had not taken steps for such calibration the rules stood violated. As such compounding fee, as decided by the Department, was payable so as to escape from coercive proceedings. It has also been pointed out that as the actual volumetric capacity were not furnished, the volume fee could not be calculated. Stamping fee was also required to be paid. The matter was taken up by the petitioner for further deliberations with the Department, and it appears that calibration had been attended, in respect of the tank that had been requested for.
5. The petitioner had thereafter addressed a letter on 5-12-1994 requesting the Department to witness and certify that recalibration of the storage tanks and to exempt the tanks which were used for LPG storage and also intermediate products tanks and other tanks where dip rods were not used. However, this request was rejected, as according to the Department, the exemption could not be granted. The Department stuck on to its stand that in view of the enforcement of the rules additional fee in fact was payable. Therefore, the stamping got delayed. An appeal had been filed by the company to the Government . But, the Government took a stand that as per the relevant rules additional fee for calibration could not be waived. This was by way of Ext. P10. These proceedings are also challen
SupremeToday
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.