SIMPLEX MILLS CO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE facts in this writ petition have brought on record the disturbing state of affairs in the Excise Department. It is seen that against an order-in-original passed by an Assistant Collector of Excise, two conflicting orders in appeal are passed by the same Collector of Excise (Appeals) for reasons best known to him. No action is taken by the superior officers when they came to know of it and on the top of it, even in the High Court the information required is produced most reluctantly, obviously with a view that no serious action is taken against the concerned officers.

(2.) MR. Parekh has appeared for the Petitioner assessee. Mr. Chaud-hari appears for the Respondents, i. e. Union of India and the Excise Officers.

(3.) THE 1st Petitioner is a public limited company engaged in the business of textiles. The 2nd Petitioner, one Shri Rameshwarlal Saboo is the Company Secretary of the 1st Petitioner. This petition is concerning the issue of proper classification of a certain fabric manufactured by the 1st Petitioner for the purposes of levying the excise duty under the Central Excise Tariff Act, 1985 and the consequent levy of duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. Amongst the fabric manufactured by the 1st Petitioner, there are fabrics known as Rayon Woven Fabrics. It is the case of the Petitioners that these fabrics are separate and distinct from Tyre Cord Fabric' of Viscose Rayon. According to the Petitioners, these abrics are made of man-made filament rayon which are woven and which are not subjected to any process. It is their case that they fall under Heading 5408 of the Schedule to the Central Excise Tariff Act and are not liable for any additional excise duty. As against that, the stand of the Department was that they fall under the category 'tyre Cord Fabric' of Viscose Rayon and they fall under Heading 5902. 30.