SOUTH ARCOT DISTRICT CO OPERATIVE SPINNING MILLS LIMITED Vs. CUSTOMS EXCISE GOLD APPELLATE TRIBUNAL SRB

JUDGEMENT

(1.) THE petitioner seeks the issue of a writ of certiorari to call for the records on the file of the first respondent in SP (MAS) 40/84 and appeal No. ED (MAS) 57/84; and quash the same. Such a prayer has come to be made in the following circumstances: During the period 25-3-1982 to 30-7-1982, the petitioner cleared a quantity of 73, 548 K. G. of 40's D. H. C. R. Cotton yarn to the West Bengal State Handloom Weavers' co-operative Society, Calcutta, after paying duty at concessional rates. THE concessional rate of duty can be availed of subject to two conditions, viz , (1) that the yarn is purchased by a registered handloom co-operative Society and (2) that the payment for such yarn is made by cheque drawn by such co-operative society on its own Banker. In the instant case, it was found that the second condition was not satisfied. After issuing a show cause notice, the central Excise authorities called upon the petitioner to pay differential duty on 75548 kg. of yarn which worked out to Rs. 36, 774/- under Section 11a of the Central Excises and salt Act, 1944 (hereinafter referred to as the Act ). THE petitioner preferred an appeal to the second respondent and prayed for stay of payment of Excise duty. THE second respondent directed the petitioner to execute a bond with Bank guarantee for the full amount and gave time till 25-1-1984. As the order was not complied with and as the petitioner failed to seek extension of time, the second respondent rejected the appeal on 31-1-1984, for non-compliance of section 35f of the Act.

(2.) AGAINST the rejection of the appeal, the petitioner preferred a further appeal to the first respondent. The first respondent passed the impugned order remanding the case to the second respondent ` forde novoconsideration subject to the condition that the appellant Mills make the deposit of the entire duty involved, within six weeks from date'. It is to quash this order, the writ petition has been filed.