DIAMOND CEMENT Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER by this petition has prayed that by appropriate order or direction, the order passed by the Assistant Collector, Central Excise dated 3-2-1990 may be struck down and the order dated 12-9-1990 of the Collector of Central Excise Indore/delhi and the order passed by the CEGAT [customs, Excise and Gold (Control) Appellate Tribunal] dated 5-2-1991 may be quashed. It is also prayed that the proviso 'during the aforesaid period' as appearing in the Notifications Nos. 124/87 and 36/87 may be declared ultra vires, being violative of Article 14 of the Constitution.

(2.) BRIEF facts which are necessary for disposal of the petition are that the petitioner has established a factory at Narsinghgarh in Damoh District for manufacture of portland cement. The production of clinker and cement from the factory started as under :

(3.) THE Government of India issued two Notifications Nos. 36/87, dated 1-3-1987 and 124/87, dated 24-9-1987 and by virtue of these Notifications certain concessions were granted in excise duty, but the Assistant Collector of Central Excise, Sagar declined to grant concession in excise duty and raised a demand of Rs. 20,53,632. 00. However, the factory deposited a sum of Rs. 5,00,000. 00 on 31-3-1990. The Assistant Collector held that the cement produced by the factory at Imlai out of the clinkers produced by the unit of 88 attracts duty and no concession is available to the cement factory.