R K AUDIM Vs. SPECIAL STEEL LTD

JUDGEMENT

(1.) This appeal by certificate is directed against the order of the Bombay High Court dated December 9, 1966 in Appeal No. 110 of 1965. By the said judgment the Division Bench-confirmed the order of the learned Single Judge in Miscellaneous petition No, 131 of 1964 quashing the notice dated November. 9, 1963 issued under Rule 10-A of the Central Excise Rules. 1944.

(2.) The first respondent is a public limited company incorporated under the Companies Act, who manufactures steel wires. On April 24, 1962 they had on hand 4077 Metric Tonnes of imported steel wire rods out of this quantity 1173 Metric Tonnes had been imported and duly cleared from the customs prior to April 24, 1962. The balance appears to have been purchase by the first respondent from the Iron and Steel Controller, Calcutta, prior to April 24, 1962. No excise duty was leviable on these rods or steel wires. But the excise duty was leviable on steel ingots. Item No. 26 AA was inserted in the schedule to the Central Excises and Salt Act,1944 (hereinafter to be referred as the Act) whereby certain iron and steel products specified therein were made subject to excise duty.

(3.) By notification No. 70 of 1962 dated April 24 1962 issued under rule, 8 (1) of the Central Excise Rules (hereinafter to be referred as the Rules) certain exemptions were granted. By another notification No. 90. of 1962 issued under the same rule on May 10,1962 certain iron and steel products were exempted.