ARUN BHANSALI, J. - (1.) THIS appeal is directed against the judgment and decree dated 7.4.1986 passed by the Additional District Judge, Bhilwara, whereby the suit filed by the respondent -plaintiff for a sum of Rs.10,55,607.17P. has been decreed alongwith interest @ 6% p.a.
(2.) THE facts in brief may be noticed thus : the plaintiff filed a suit on 16.3.1979 inter -alia with the averments that the plaintiff Company was involved in the manufacture of blended yarn and started manufacturing the same in September, 1966 and on demand being made by the Deputy Superintendent, Central Excise under Central Excise Tariff Items No.18 & 18A, the plaintiff started paying the excise duty w.e.f. 14.9.1966. The rate of excise duty kept on challenging from time to time. The Company continued payment of the duty till 15.3.1972 when in fact, no duty was payable on the blended yarn under tariff Items No.18 & 18A and the defendants were not entitled to recover the same. It was claimed that during the said period 14.9.1966 to 15.3.1972, the plaintiff paid excise duty to the tune of Rs. 10,55,607.17P. on account of mistake of law and the said mistake was discovered when on 3.4.1976, a judgment of Hon'ble Gujarat High Court dated 15.1.1976 came to the notice of the officers of the Company wherein the levy under tariff Items No.18 & 18A was held to be bad. On coming to know of the said judgment, the plaintiff applied before the Superintendent, Central Excise on 3.4.1976 for refund of the duties paid, however, without considering the plea raised by the Company and without giving any opportunity of hearing and without considering the judgment of the Gujarat High Court, the claim was rejected as time barred. An appeal was filed before the Assistant Collector, Central Excise, Ajmer, which was also rejected on 31.1.1977 and therefore, on 12.1.1979, a notice under Section 80 CPC was issued and the suit was filed on 16.3.1979.
(3.) A written statement was filed by the defendant inter -alia questioning the jurisdiction of the Court and taking a plea that the suit was barred by limitation.;