ENNORE STEEL ENTERPRISES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) OUT of these writ petitions one manufacturer has filed W.P. Nos. 13566 and 13567 of 1986 and 11938 of 1988 while another manufacturer has filed Writ Petition Nos. 13564 and 13565 of 1986 and 11939 of 1988. The prayer in the writ petition Nos. 13566 and 13564 of 1986 are similar and they are for certiorarified mandamus to call for the records of the third respondent demanding certain amounts from the petitioners under Rule 56(i) of the Central Excise Rules, 1944. The prayer in the Writ Petition Nos. 13565 and 13567 of 1986 is for a declaration declaring condition (ii) in para 2 of the order F.No. B.22-5-1986-TRU, dated 7-4-1986 as invalid while the prayer in the writ petition Nos. 11938 and 11939 of 1988 is for a declaration declaring Rule 56(i) of the Central Excise Rules, 1944 as ultra vires.

(2.) THE brief facts necessary for the purpose of these cases are as follows : THE petitioners are manufacturers of steel ingots. One of the inputs is waste and scrap which the petitioners buy in the open market. Under Rule 57A of the Central Excise Rules, 1944, the Central Government may by notification in the Official Gazette, specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty .. paid on the goods used.. (hereinafter referred to as the 'input') .. towards payment of duty of excise leviable on the final products Rule 57-G states that every manufacturer intending to take credit of the duty paid on inputs under Rule 57A, shall file a declaration with the Assistant Collector of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in each of the said final products. THE second proviso to Rule 57-G is important and it reads as follows:

(3.) RULE 57-1, which has been relied upon by the third respondent reads as follows :