- (1.) These two appeals are directed against the common judgment and order dated 25th February, 2002, passed by the High Court of Gujarat at Ahmedabad in Special Civil Applications Nos. 10588 and 10590 of 2001. By the impugned order, the High Court has set aside the two orders, dated 16th October, 2001 and 25th October, 2001 passed by the Commissioner, Central Excise and Customs, Ahmedabad, denying to Respondent No. 1 Company (hereinafter referred to as "the Assessee") the benefit of special procedure for payment of Central Excise, viz. the Compounded Levy Scheme, under Rule 96ZNA of the Central Excise Rules, 1944 ("the Rules" for short).
(2.) The issue involved in both the appeals being identical, these are being disposed of by this common order.
(3.) To appreciate the controversy, a brief reference to the background facts would be necessary. These are: Vide Notification No. 16/2001 -CE (NT) dated 30.04.2001 a new section E-XA, titled as "Processed Textile Fabrics", was inserted in the Rules, containing Rules 96ZNA to 96ZND, providing for special procedure for payment of Excise Duty by an independent textile processor covered under the scheme, subject to the conditions and limitations laid therein. One of the conditions, enumerated in Rule 96ZNB, is that the original value of the investment in the plant and machinery installed in the factory of the independent textile processor of the said goods, as on 1st March, 2001 or on 1st May, 2001 whichever is higher, for an existing factory of the independent textile processor or on the date of making the application under Rule 96ZNA in the case of an independent textile processor commencing production for the first time in a new factory coming into existence after 1st May, 2001 shall not exceed three crore rupees, irrespective of whether such plant and machinery is in use or not, or is in working condition or not, and the independent textile processor shall declare the original value of investment in such plant and machinery installed in his factory, on the dates mentioned above, in the prescribed format duly certified by a Chartered Accountant or Cost Accountant.;