BENGAL NATIONAL MILLS Vs. C T A PILLAI

JUDGEMENT

(1.) IN this application under Article 226 of the Constitution, there are three petitioners. First one is the Company and the petitioners nos. 2 and 3 are the Directors of the said company. The petitioners challenges in this application mainly an order of the central Government passed in revision on 14th July, 1977 which was communicated to the petitioners on 11th August, 1977. In order to appreciate the challenge, it is necessary to narrate few facts. The petitioner no. 1 is a public limited company and has its mill at birati in the district of 24 Parganas near calcutta and, inter-alia, carries on business as manufacturers of woolen Worsted and synthetic yearns of various types and also as manufacturers of woolen art silk and other fabrics of various kinds. Item No. 18 of the First Schedule to the Central Excise and Salt Act, 1944, called Central Excise Tariff which was in force during the relevant period, that is to say, in 1974 was as follows :

(2.) UNDER a notification issued by the government of India on 17th March, 1972, the Central Government exempted yarn spun out of synthetic staple fibre falling under Item No. 18 of the First Schedule to the Central Excise and Salt Act, 1944 and of the description specified in column 2 of the Table annexed to the said notification from so much of the duty of excise leviable thereon as was in excess of the duty specified in the corresponding entry in column 3 thereof. The relevant portion of Table was 99 follows: <FRM>JUDGEMENT_30_TLCAL0_1979Html1.htm</FRM>

(3.) IT appears that there was an amendment to the notification which was to the following effect : "in exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government - hereby directs that the notifications of the government of India in the ministry of Finance (Department of Revenue and Insurance) specified in column (2) of the Table hereto annexed shall be amended in the mariner specified in column (3) of the said Table. <FRM>JUDGEMENT_30_TLCAL0_1979Html2.htm</FRM> There was further amendment to the notification on 1st March, 1973 which was subsequently amended on the 1st March, 1974 and the relevant portion of the said notification was as follows : <FRM>JUDGEMENT_30_TLCAL0_1979Html3.htm</FRM>