MYSORE PAPER MILLS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is the Mysore Paper Mills Ltd., which manufactures all varieties of writing and printing paper as also newsprint in its factory. Among the several types of paper manufactured by the petitioner-Company, printing and writing paper is exigible to levy under Central Excise Act under Item 17(3) of the Schedule at 60 Paise per Kgin. But the petitioner went on paying by mistake, at Rs. 1-20 Ps. per Kgm. under Item 17(2) of the Schedule. Item 17(2) and (3) are reproduced below for ready reference. <FRM>JUDGEMENT_538_KANTLJ4_1990Html1.htm</FRM>

(2.) It is stated by the petitioner that it went on paying the duty since the department insisted on payment of Rs. 1 -20 Ps. per Kgm. during the period 1965 to 1976. The Special Bench of the Customs, Excise and Gold (Control) Appellate Tribunal, in the case of Sirpur Paper Mills Ltd. v Collector of General Excise, Hyderabad, reported in 1983(2) ECR 503 (October-Part 10 of the Report) held that writing and printing paper, irrespective of the grammage, was required to be classified under tariff Item 17(3). It held that the department was in error in classifying writing and printing paper as 'other kinds of paper' falling under Item 4. This decision was rendered on 1st July, 1983. After coming to know of the said decision, the petitioner, realising the mistake in paying excess of duty than what was legitimately due to the Government, made a claim for refund of the excess amounts paid by it during 1965 to 1976. This application for refund was made on 30-3-1984 claiming refund of a sum of Rs. 10,63,071-63 Ps.

(3.) The Assistant Collector of Central Excise, Davangere the second respondent made an order on 26-11-1985 as per Annexure-A rejecting the claim as barred by time under Section 11-B of the Central Excise and Salt Act. This order is challenged by the petitioner in this writ petition.