FORT WILLIAM CO LTD Vs. INSPECTOR CENTRAL EXCISE

JUDGEMENT

(1.) Common questions of law are involved in these Rules, accordingly, these Rules are heard together and my judgment in Civil Rule No. 5479(W) of 1977 shall govern all other Rules.

(2.) Petitioner is a public limited company. Its business consists, inter alia, of manufacture of jute products consisting of carpet backing, hessian sacking, bagging cloth including jute yarn and jute twine for the purpose of jute textiles manufacturing business.

(3.) By an Order No. S.O. 149(A) dated 25th February, 1976 issued in pursuance of the powers conferred by Section 9(1) of the Industries (Development and Regulation) Act, 1951 (hereinafter referred to as the Act), the Central Government specified the classes of goods manufactured or produced wholly or in part of jute in the scheduled industry of Textiles as mentioned in column (2) of the table set out in the said order on which a duty of excise was to be levied and collected as a cess for the purpose of the said Act for a period of one year commencing from 1st March, 1976 at the rates specified in the corresponding entry in column No. 3 of the said table. Column No. (3) 6f the said table provides that Rs. 3.75 p. is the rate of duty of excise per tone payable on sacking, jute twines and yarns. The operation of the said notification has been extended for one year commencing from March, 1977 by an Order No. S.O. 162(E), dated February 4, 1977. Petitioner is one of the members of the Indian Jute Mills Association. By a circular dated 6th May, 1977 the Secretary of the Indian Jute Mills Association informed the petitioner about the clarification made by the Collector of Central Excise and Customs, West Bengal, by its Trade Notice dated 28th April, 1977. The said clarification is set out hereinbelow: