UNION OF INDIA Vs. INDIAN PLASTICS AND CHEMICALS

JUDGEMENT

(1.) This is a Letter Patents Appeal against the order of the learned Single Judge dated 22.12.1980 in Civil Writ Petition No.750/92. The learned Single Judge by the impugned judgement quashed the orders dated 10.12.1968, 30.4.1969, 30.7.1969 and 27.5.1972, pertaining to the levy of excise duty under tariff item No.15-A on the solution of Phenolic Resin produced by the respondents. The appellants, by the impugned judgement, were further directed to refund the excise duty of Rs.8,70,710.40p. to the respondents.

(2.) The respondents in the writ petition had challenged the levy of excise duty on the aqueous solution of Phenolic Resin. The learned Single Judge after considering the literature and material produced on record and rival submissions of the parties reached the finding and conclusion that the product of the respondents in appeal and petitioners in the writ petition, was only an intermediary product and was not resin manufactured in liquid form and did not fall within the tariff item 15-A and, hence, was not exigible to excise duty. The learned Single Judge, as noted above, has accordingly quashed the orders pertaining to the levy of excise duty and directed refund of the duty collected.

(3.) The present appeal was admitted to hearing on 5.2.1982. The appellant Union of India was directed on 30.8.1983 to deposit the sum of Rs.6,24,420.77 after taking into account the submission that certain amount had already been refunded. Vide orders dated 9.1.1984 the respondents were permitted to withdraw the amount subject to furnishing bank guarantee and to further condition that it would pay interest @12 per cent on the amount refunded if they became liable for restitution.