DAYAL WEAVING FACTORY Vs. UNION OF INDIA

JUDGEMENT

(1.) -This judgment will dispose of Civil Writs Nos. 346 and 347 of 1969. The petitioner in the former is the Dayal Weaving Factory and the petitioner in the latter is the Vinod Textiles. Petitioners are seeking the issuance of a writ etc. for quashing the order dated March 1, 1969 of the Central Excise Inspector, Panipat, direcing the petitioners (1) to maintain RG I and ED 4 account; (2) not to clear the stock under manufacture without payment of duty on AR I at the rate of 12% basic 2% additional ad valorem and (3) to clearly segregate the units and get the store room within the factory approved immediately. The petitioners have also prayed for quashing the Central Excises and Salt Act, 1944, as set out in clauses 30(xii) die Central Excises and Salt Act, 1944, as set out in clauses 30(xii) and 33(ii) of the Finance Bill, 1969. It is necessary only to mention the facts in Civil Writ No. 346 of 1969 as the facts in Civil Writ No. 347 of 1969 are simlar.

(2.) The petitioners have alleged that they are self employed small scale industrialists with an investment of Rs. 20,000.00 manufacturing cotton fabrics, particularly "tapestry and bed sheets".

(3.) The petitioners' factory is being run under a licence issued under the Central Excises and Salt Act, 1944, hereinafter referred to as "the Act". The manufacture of these commodities is being done on four handlooms. Cotton fabrics were subject to a duty of excise on the rates specified in the first schedule of the Act under item 19. Before the Finance Bill of 1969, the relevant part of entry 19 in the first Schedule of the Act read :-