ARLABS LTD Vs. A K BANDYOPADHYAY

JUDGEMENT

(1.) In this petition under articles 226 and 227 of the Constitution, the Petitioner Company, being manufacturer of dye-stuffs, hereinafter referred to as "the company", challenges the legality of the notice of demand, respective dated December 24, 1965 and January 24, 1966 purported to have been issued under rule 10-A of the Central Excise Rules 1944 and demanding from the Company payment of the two respective sums of Rs. 41,152.25 and Rs. 83,238.14 as also the decision of the Assistant Collector of Central Excise, Poona, dated March 26, 1966 whereby the Collector negatived the contentions of the company relating to these notices of demands being illegal and not enforceable.

(2.) Following the judgment of a Division Bench of court dated 1/2 July, 1965 in Appeal No. 69 of 1963 we are about to accept the company's contentions that those notices of demands were beyond the period of limitation prescribed by rule 10-A, we have prevented the company from arguing all other contentions made in the petition. For the very same reasons we do not find it necessary to relate all facts mentioned in the pleadings of the parties in this judgment. The facts which require to be noticed are as follows :- Prior to April 1, 1961 duty of excise was not levied under the Central Excises and Salt Act on "synthetic organic dye-stuffs and synthetic organic derivatives used in any dyeing process". By the Finance Act of 1961, the schedule to the above Act was amended to include entry 14(D) and on the goods of the description mentioned above, basic and special excise duties were levied respectively at the rates 16% ad valorem and 10% of the basic duty chargeable.

(3.) Prior to April 1, 1961, the company appears to have become Owners of Naphthol ASBS, Naphthol AS, Naphthol ASG, Naphthol ASD, Base Red KB, Vat Brown BR. Vat Olive Green B. Sym. Indigo, Base Red B, Bordo GP Base and Base Red GG which were all synthetic organic dye-stuffs (basic). Excise duty was not chargeable in respect of these goods as they come to be of the ownership of the company prior to April 1, 1961.