SUHAS CHANDRA SEN, J. - (1.) THE facts of the case are as under: -
(2.) THE petitioner at all material times carried on and still now carries on the business of manufacturing hosiery garments. By the Finance Act, 1971 a new Tariff Item No. 22D was inserted in the First Schedule to the said Act for the first time which covered inter alia articles of ready to wear apparel including undergarments and body supporting garments but excluding articles of hosiery. As articles of hosiery were specifically excluded, the petitioner was admittedly not liable to pay any central excise duty at that time and there was no dispute with regard thereto. Tariff Item No. 68 was inserted in the First Schedule to the said Act with effect from March 1,1975. The Central Excise Authorities thereafter took the view that the petitioner had become liable to pay central excise duty on the said goods under Tariff Item No. 68. The petitioner was required by the central excise authorities to obtain central excise licence and to comply with all central excise formalities and to pay central excise duty. Due to such instructions/directions of the central excise authorities the petitioner obtained a central excise licence and paid central excise duty on the said goods with effect from March 1, 1975.
(3.) THE aforesaid position continued till June, 1977. During the said period, that is, from March, 1975 to June, 1977 (hereinafter referred to as the said first period) a total sum of Rs. 1,11,580.86 paise was paid by and/or collected from the petitioner on the said goods manufactured by it at the rates applicable to Tariff Item No. 68. The said sum of Rs. 1,11,580.86 paise was not paid under any protest.;