ASSAM HARD BOARDS LTD. Vs. UNION OF INDIA (UOI) AND ORS.

JUDGEMENT

(1.) IN this application under Article 226 of the Constitution of India, the petitioner has prayed for a writ in the nature of Certiorari or Mandamus to direct that he be not required to pay duty on the water content of the synthetic resins that is being manufactured, by him and also for a declaration that the Notification No. 156/65 dated 23rd September, 1965 (Annexure -A, P. 25) issued under Rule 8 of the Central Excise Rules is ultra vires of said rules and the Central Excises and Salt Act.

(2.) THE article, on which duty has been sought to be levied, is Phenol Formaldehyde Resins. As shown against item No. 15A in the First Schedule to the Central Excise and Salt Act (hereinafter referred to as "the said Act"), thirty per cent ad valorem duty is liable to be paid on the synthetic resins in any form, whether solid, liquid, or pasty or as powder, granules or flakes or in the form of moulding powders. However, by virtue of powers conferred under Rule 8 of the Act, the Central Government had exempted from excise duty any sum that may exceed 80 paise per kg. of such phenol, i. e. Resin, as per its order dated, 23 September, 1965.

(3.) HE also drew our attention to a Circular (pp. 71 -72) stated to have been issued by the Central Board of Revenue, an extract of which reads as follows :