BALLARPUR INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition the petitioners are challengingthe order passed by the Collector, Customs & Central Excise, New Delhi, dated20.8.83. The Collector had held that the Srigopal Unit of the petitioner at.Yamuna Nagar was guilty of disregarding the provisions Rule 173 (F) of theCentral Excise Rules, 1944, and that the petitioners were liable to pay dutyamounting to Rs. 10,05,1899.00 and Rs. 15,377-17 under Rule 10 and the penalty of Rs. 5,00,000.00.

(2.) The petitioner company manufactures white printing paper. Duringthe relevant period white printing paper was covered by item No. 17 of the1st Schedule to the Central Excise and Salt Act, 1944 and was liable to pay advalorem duty @ 25%. By notification No. 68/76-CE and 69/76-CE dated 16.3.76a concessional rate of duty @ 5.5% ad valorem was made available to themanufactures of white paper for the quantities of paper supplied by them tothe Director General of Supplies and Disposal and supplied to other agenciesfor educational purposes. The said notification reads:-Notification No. 68/76-Central Excise

(3.) At the relevant time the retention price of white paper was fixedat Rs. 2750.00 per metric tonne under the paper control order. By a separateorder the maximum price of the exercise books was also fixed. Under theScheme a quota was allotted to paper manufacturing concerns for supply ofpaper for educational purposes. The object of the duty concession under thesaid notifications was to ensure that the students get the exercise books at areasonable controlled price. Paper supplied through DOS&D was also madeentitled to the duty concession.