- (1.) This appeal from original order, at the instance of the central excise authorities, who were respondents in Civil Rule No. 12902(W) of 1981, was directed against the judgment and order dated 5th October, 1983, as made in that Civil Rule by a learned single Judge and whereby the said learned Judge, made the rule absolute and directed the issue of appropriate writ or writs, asking the respondents before him to rescind, recall, cancel and withdraw an order dated 30th March, 1981, passed by the Superintendent of Central Excise concerned and also the order dated 17th November, 1981, passed by the Assistant Collector of Central Excise concerned and consequently, directed the quashing of those records. The said learned Judge also directed that the respondents shall release or refund the amount of Rs. 1,35,185 to the writ petitioner, viz., R.K. Chemical Industries (P) Ltd. who are respondents in the appeal and will hereafter be referred to as the said respondents.
(2.) The said respondents, who obtained the concerned Civil Rule and from the determinations whereof this appeal has been presented on 19th September, 1984 has claimed to be a company incorporated under the Companies Act, 1956 and has also stated to have their registered office at 141/1, Radhabazar Street, Calcutta-700 001 and their factory at 24, Misrupara Road, P.O. Raipur, District 24 Parganas, apart from indicating that they were and are engaged in carrying on the business of manufacture of "starch" falling under tariff item No. 15C and gum powder amongst others, falling under tariff item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944. The Act in question, will hereafter be referred to as the said Act and First Schedule as the said Schedule.
(3.) It has also been stated by the said respondents that for the purpose of manufacturing excisable goods they obtained central excise licence being L-4 No. 1/Starch/76 dated 2nd August, 1976 and also complied with all the provisions of the said Act and the Rules framed thereunder, apart from duly submitting the necessary classification lists in Form 1, showing manufacture of all excisable goods falling under tariff item No. I5C and 68 of the said Schedule, as required under Rule 173B of the Central Excise Rules, 1944 (hereinafter referred to as the said Rules). It would appear that a notification being No. 71/78C dated 1st March, 1978, was issued on the same date by the Government of India, exempting various excisable goods of the description as specified in Column III of the records as annexed with the said notification and amongst others the goods as mentioned therein, were termed as "specified goods" and the nature of exemption granted, was that the duty on those specified goods would be exempted on the first clearance to the extent of Rs. 5 lakhs in any financial year, provided that during financial years subsequent to the financial year 1978-79, the total clearances of such goods for home consumption during the preceding financial year would not exceed Rs. 15 lakhs. The notification in question, has been disclosed in the petition of motion and it has also been indicated that the said notification was amended by notification No. 141/79-C.E. dated 30th March, 1979, by inserting a new clause being No. (III) after Clause (II) of the concerned notification No. 71/78-CE dated 1st March, 1978 and it has been pointed out that the new clause as mentioned hereinbefore, was added to the earlier and existing notification No. 71/78-CE, dated 1st March, 1979, and the present clause as incorporated, is in issue as the said respondent was concerned at the relevant time, with the manufacture of excisable goods falling under more than one item of the said Schedule. The subsequent notification No. 141/79-CE dated 30th March, 1979 has also been indicated in the petition.;