D. Basu, J. - (1.) The Petitioner is a registered co -operative society and was formed with the object of manufacturing cotton fabrics on power -looms. The society alleges that it has 16 power -looms allotted to its eight members and that it has engaged the Ashoke Textile Corporation as its selling agents for sale of the cloth produced by the Petitioner.
(2.) The Petitioner's case is that the cotton fabrics produced by the Petitioner co -operative society is exempted from excise duty by virtue of a notification issued on April 30, 1960, under Rule 8(1) of the Central Excise Rules, 1944; that notwithstanding such exemption certain officials appointed by the Excise Department entered into the premises of the Petitioner on November 24, 1964, and searched and seized the books of account as well as the entire stock of cloth lying at the Petitioner's factory. On the same date Respondent No. 6, the Deputy Superintendent of Central Excise, served a notice (annEx. B to the petition, p. 29) upon the Petitioner calling upon it to submit returns for the purpose of assessment to excise duty and also restrained the clearance of any goods from the Petitioner's factory without payment of Central excise duty on and from November 24, 1964.
(3.) The Petitioner challenges the validity of the search and seizure as well as the notice and order at annEx. B aforesaid on various grounds of which those which were pressed at the hearing will be dealt with in this judgment.;