SYNTHETICS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order passed in M. P. No. 520 of 1990, will also govern the disposal of all the petitions mentioned above, as in all these petitions the common question involved is, whether Central Excise duty should be collected from the petitioners in respect of their manufactured textured dyed waste or textured waste at take-up stage or at the stage when these are in the furnished (sic) and marketable condition. By order/notice-filed as Annexure-A to each of the petition, stand of the Central Excise Department has been that duty is collectable at take-up stage and not at the stage when the product is in the finished and marketable condition.

(2.) IN Misc. Petition No. 535 of 1990, penalty of Rs. 1000/-, under Rule 210, read with Rule 53 of the Central Excise Rules, 1944, has been imposed against the petitioners. The allegation is that by not accounting for their product at the intermediate stage- take-up stage and paying duty at that point, the petitioners violated Rule 53 of the Central Excise Rules, read with Rules 9 and 49 ibid.

(3.) AT the hearing of the petitions Shri Kohli submitted that in view of Circular No. 16/90-CXI-dated 23. 5. 1990, issued by the Central Board of Excise and Customs, Govt. of India, which is followed by Trade Notice No. 64/90, dated 15. 6. 1990, issued by the Collector of Central Excise and Customs, Indore, stand of the petitioners has been accepted by Government and duty held payable at the finished and marketable stage and not at the take-up stage. It was also submitted that the petitioners' product does not come within the exceptions set out in clarification in Para 2 of the Trade Notice. Shri Kohli further submitted that in view of this Trade Notice each of Annexures-A, to the petitions aforesaid, including one of penalty in M. P. No. 535/90, would deserve to be quashed. Shri B. G. Neema, representing the Union of India also agreed with the submissions of Shri Kohli.