MIHIR TEXTILES LTD Vs. UNION OF INDIA
LAWS(GJH)-1988-3-20
HIGH COURT OF GUJARAT
Decided on March 08,1988

Mihir Textiles Ltd Appellant
VERSUS
UNION OF INDIA Respondents


Referred Judgements :-

UNION OF INDIA V. THE ELPHINSTONE SPINNING AND WEAVING MILLS CO. LTD. [REFERRED TO]
ALEMBIC CHEMICAL WORKS V. UNION OF INDIA [REFERRED TO]
PROVINCE OF MADRAS V. M/S. BADDU PAIDDANA AND SONS [REFERRED TO]
ARYODAYA SPG. AND WVG. CO. LTD. V. UNION OF INDIA [REFERRED TO]
KIRLOSKAR BROTHERS LTD. V. UNION OF INDIA [REFERRED TO]
UNION OF INDIA V. KIRLOSKAR BROTHERS LTD. [REFERRED TO]
R.C. JALL V. UNION OF INDIA [REFERRED TO]
CHHOTABHAI JETHABHAI PATEL AND CO. VS. UNION OF INDIA [REFERRED TO]
A B ABDULCADI A K MAMOO T E ABRAHAM E J MATTHEW E P EAPAN VS. STATE OF KERALA [REFERRED TO]
ORIENT PAPER MILLS LIMITED VS. UNION OF INDIA [REFERRED TO]
A B ABDUL KADIR VS. STATE OF KERALA [REFERRED TO]
SIRPUR PAPER MILLS LTD VS. GOVT OF INDIA [REFERRED TO]



Cited Judgements :-

MAHESHWARI MILLS LIMITED VS. UNION OF INDIA [LAWS(GJH)-1991-4-9] [REFERRED TO]


JUDGEMENT

A.M.AHMADI - (1.)We had heard these petitions at length and we had indicated to the learned Advocates that we would dispose of these petitions as finally heard. At that time Mrs. Mehta and Mr. J. D. Ajmera had stated that they would waive service of rule on behalf of the respondents and the Court may dispose of the petitions finally. Accordingly we issue rule. Mrs. Mehta and Mr. Ajmera waive service of rule in each petition and we now proceed to dispose of the petitions on merits.
(2.)In this batch of petitions the petitioner Companies are engaged in the manufacture and production of cotton and man-made fabric covered under Chapters 52 54 and 55 of the Central Excise Tariff Act 1985 (hereinafter called the Tariff Act). These manufacturing concerns have taken out L-IV licenses under the Central Excises and Salt Act 1944 (hereinafter called the 1944 Act) read with the Central Excise Rules 1944 (hereinafter called the Rules) framed thereunder. According to the petitioners eventhough man-made fabric is an excisable commodity under the Tariff Act on duty of excise is leviable thereon under Sec. 3 of the 1944 Act but an additional duty of excise is levied on specified goods under sub-sec. (3) of Sec 3 of the Additional Duties of Excise (Goods of Special Importance) Act 1957 (hereinafter called the 1957 Act) i.e. inter alia on goods falling under Chapter 54 and 55 of the Tariff Act. Section 3 of the 1957 Act reads as under:
"3 Levy and collection of additional duties :- (1) There shall be levied and collected in respect of the following goods namely sugar tobacco cotton fabrics silk fabrics man-made fabrics and woolen fabrics produced or manufactured in India and on all such goods lying in stock within the precincts of any factory warehouse or other premises where the said goods were manufactured stored or produced. or in any premises apartment thereto duties of excise at the rate or rates specified ill the First Schedule to this Act.

(2) The duties of excise referred to in sub-sec. (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises and Salt Act 1944 or any other law for the time being in force.

(3) The provisions of the Central Excises and Salt Act 1944 and the Rules mad thereunder including those relating to refunds and exemptions from duty shall so far as may be apply in relation to the levy and collection of the additional duties as they apply in relation to the levy and collection of the duties of excise on the goods specified in sub-sec. (1)."
By Notification No. 60 of 1987 dated 1/03/1987 issued in exercise of power conferred by Rule 8(1) of the Rules partial exemption was granted in respect of certain man-made fabrics namely goods falling within the Headings 54.09 54.12 55.08 55.11 and 55 12 of Chapters 54 and 55 of Tariff Act. The petitioners contend that they were paying duty as per this Notification (as amended by Notification No. 142 of 1987 dated 12/05/1987 and corrected by Corrigendum dated 7/07/1987 till 24/11/1987
(3.)On 25/11/1987 the Central Government issued another Notification No. 254 of 1987 (Annexure A) superseding the earlier Notification No. 60 of 1987 whereby the basis for grant of exemption underwent a change in respect of the goods covered under the aforestated headings. The petitioner contend that the net effect of this change is an increase in the additional duty of excise on the specified goods. The question then is whether goods manufactured before the Notification No. 254 of 1987 dated 26/11/1987 came into effect but not removed from the factory premises would be governed by the said Notification or the earlier Notification No. 60 of 1987 which was in operation till then. According to the petitioners the goods manufactured prior to 25/11/1987 and laying in stock of the Company would be entitled to the benefit of the exemption Notification No. 60 of 1987 and would be liable to pay additional duty on the basis thereof. The revenue contends otherwise.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.