RELIANCE TEXTILE INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) WE informed the Counsel for the Respondents as soon as the petition was called out for hearing that one of us (Pendse J.) is a share-holder of Petitioner No. 1-Company. The Counsel for the respondents, after taking instructions from the officers, stated that the respondents have no objection to this Bench hearing the petition. We proceeded to hear the petition only after the assurance was given.

(2.) THE question which falls for determination in this petition filed under Articles 226 and 227 of the Constitution is the rate of duty leviable on partially oriented yarn of 132 denierage at the time of clearance from the factory gate. The facts giving rise to the filing of the petition are not in dispute and are required to be briefly stated to appreciate the grievance of the petitioners.

(3.) PETITIONER No. 1 is a public limited company and its factory unit is situated at Patalganga where polyester filament yarn of the type known as partially oriented yarn (POY) is manufactured. The Company has also another factory situated at Naroda, Ahmedabad in the state of Gujarat, where the work of texturising is carried out. The POY manufactured by the patalganga unit are basically of the types of 132, 215 and 245 deniers. The POY are cleared directly from the manufacturing unit at Patalganga on payment of central excise duty. The manufacturing unit in respect of such clearance is provisionally assessed under Rule 9b of the central Excise Rules, 1944, and duty is assessed at the rate of Rs. 61. 25 per kg. on the POY manufactured which is within the range of 100 to 750 deniers in respect of clearance made prior to March 1, 1983.