ORIENT PAPER AND INDUSTRIES LTD Vs. SPECIAL SECRETARY TO THE GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

JUDGEMENT

(1.) The dispute in this case is about classification of N.G. Poster Paper manufactured by Orient Paper and Industries Limited, herein- after described as the petitioner company, for the purpose of assessment of excise duty.

(2.) Upto 28th February, 1961, Printing 3c Writing Paper and Packing & Wrapping Paper were subject to Excise Duty @ 22p. Per Kg. though the former was charged under item 17(3) and the latter under item 17(4) of the Tariff. The Finance Act of 1961 raised the Excise duty under item 17(4) to 35p. Per Kg. with effect from 1-3-61. From March, 1961 to 1st August, 1961, the Excise Office levied duty on M.G. Poster Paper under item 17(3), i.e. at the rate of 22p. per kg. as Printing & Writing Paper. In other words, M.G. Poster Paper was treated as Printing & Writing Paper. Subsequently, the Excise Deptt. considered this M.G. Poster Paper as Packing & Wrapping Paper and classified the said Poster Paper under item 17(4). The appellant paid duty under protest and represented to the Asstt. Collector for refund on the ground that the subject paper should have been classified under item 17(3) as was being done hitherto and consequently the duty collected was in excess of that leviable under the law. The Asstt. Collector rejected the claim. The appellants went up in appeal to the Collector of Central Excise, Calcutta & Orissa who also rejected the appeal and thereafter the appellants went to the Central Government in Revision Application and the Government of India declined to interfere with the orders passed by the Collector in Appeal. The Collector of Central Excise rejected the appeal stating that the Central Board of Revenue had already made it clear that any type of Poster Paper of whatever colour including white, should not be treated as Printing & Writing Paper but as packing and wrapping Paper. As such he decided the matter up holding the classification made by the Asstt. Collector and rejecting the appeal. The Govt. of India, however, without assigning any reason, did not interfere with the Order-in-Appeal and rejected the Revision Application. The Supreme Court in its judgment in C.A. 659-664 of 1965 dealt with the matter elaborately and came to the findings that the oower of the appellate authority and of the assessing authority is a quasi-judicial power. Having found that this quasi-Judicial power was not properly exercised, the Supreme Court vacated the Grder-in-Appeal as well ]as the Order-in-Revision and directed that the matter of finding fact should be left to the authority under the Act. The proceedings were remitted to the Collector for deciding the question whether M.G. Poster paper should be assessed as Printing & Writing Paper or as packing & Wrapping Paper afresh.

(3.) The Appellate Collector of Central Excise on 30th November, 1973 after elaborate review of the facts and evidence placed before it, held that the classification of the M.G. Poster Paper manufactured by the petitioner company should be classified under the Heading "Printing and Wrapping Paper."