BHARAT CARPETS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) plaintiff Company has brought this suit against the Defendant for the recovery of Rs. 7,31,153.08. It is alleged in the Plaint that the plaintiff carries on business of manufacturing and dealing in machine-made woollen tufted carpets. It is further alleged that the said carpets are not excisable goods within the meaning of woollen fabrics described in item 21 of the First Schedule to the Central Excises and Salt Act, 1944, as such articles are not specified therein.

(2.) A The plaintiff has further stated that their factory, set up at Faridabad, had started its production some time in 1967, that the Central Excise authorities wrongfully and illegally contended that the carpets manufactured by them were excisable goods within the meaning of the Act and, Therefore they insisted for the payment of Central Excise duty livable on the said goods and that, as demanded by the authorities, the plaintiff paid Rs. 7,31,153.08 in the form of Excise Duty for the period 22nd June 1968 to 20th April 1972. The payments were, however, made under protest. Details of the payment have been shown year wise in the Statement annexed to the Plaint.

(3.) It is further stated that the plaintiff had challenged the order of the Assistant Collector about the levying of the Central Excise Duty, before the Collector, on the ground that tufted woollen carpets were not subject to the levy of such duty. The appeal failed but the statutory revision, referred to the Government of India was, however, accepted on 14th April 1972. The said order was passed by the Joint Secretary, Government of India, Ministry of Finance (Department of Revenue & Insurance). It was candidly held therein that the woollen tufted carpets were not excisable goods.