- (1.) THE petitioner concern seeks to impugn notices Annexures P. 4, P. 6, P. 7, P. 8 and P. 10 for the recovery of Rs. 19,466. 38 on account of the differential duty on the baby blankets cleared by it at the tariff value of Rs. 25/- per Kg. It pleads the following facts :
(2.) THE petitioner concern finishes two types of blankets - (1) 2 metre x11/4 metre in length (approximately) and (ii) of the dimension of 54"x54" and 60"x60". According to it, the latter type of blankets are known as 'baby blankets'. Further since the petitioner had opted for 'self-removal procedure' as mentioned in Chapter 7-A of the Central Excise Rules, 1944 (for short, the Rules), it removed some baby blankets during the period February 1977 to May 1977 by debiting excise duty at the tariff value of Rs. 25/- per kg. This, according to it, was done in the light of notification No. 4/77-G. E. dated January 17, 1977 (Annexure P. 1) issued by the Government of India, laying down the tariff value of the blankets the relevant part of which reads as follows : "in exercise of powers conferred by Sub-sections (2) and (3) of Section 3 of the Central Excise and Salt Act, 1944 (1 of 1944 ). . . fixes for processed woollen fabrics, falling under item No. 21 of the First Schedule. . . . TABLE Serial No. Description Tariff Values (1) (2) (3) 1. XXX XXX XXX XXX 8. Fabrics containing not less than 90 per cent of shoddy yarn (a) Blankets (i) Weighing 1. 44 Kg. or less 25. 00 (ii) Weighing more than 1. 44 kg. 42. 00 (b) Others (i) Fabrics commonly known as melten cloth 30. 00 (ii) All others 51. 00 Explanation : For the purposes of this notification. . . . (4) 'woollen fabrics' means woollen fabrics of every description except tufted woollen fabrics. "
(3.) WHEN the petitioner submitted its monthly returns for the period in question in Form R. T. 12 as prescribed under Rule 173-G (3) of the Rules, the competent authority came to the conclusion that what had actually been cleared by the petitioner during the above noted period from its premises were not baby blankets but woollen fabrics and subjected these to duty at the tariff value of Rs. 51/- per Kg. All these orders undisputably were passed in the presence of the petitioner or its representative. Since the petitioner failed to pay the duty in terms of these orders the impugned notices or their reminders were issued to the petitioner for paying the amount of duty in question within the stipulated period. The petitioner impugns these notices/reminders on two grounds - firstly, prior to the issuance of these notices/reminders no notice as envisaged by Rule 10 of the Rule was issued to it and in the absence of the same the present notices stand vitiated and secondly, the petitioner has been discriminated in not accepting the goods cleared by it as 'baby blankets' vis-a-vis the similar goods manufactured and cleared by another concern known as 'm/s. Raj Dyeing and Mills Works, Sultanwind Road, Amritsar'. The order of the Appellate Collector dated June 20, 1981, subjecting the shoddy baby blankets cleared by that concern to duty at the tariff rate of Rs. 25/-per kg. is placed on the records of this case as Annexure P. 12.;