BIHAR COTTON MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) In this case the petitioner is an incorporated company called the Bihar Cotton Mills Ltd. with its registered office at Phulwari Sharif. The petitioner manufactures textile goods of medium quality including "dhoties" under a licence granted by the Collector of Central Excise and bearing Tex Mark No. 401.

(2.) On 26-40-1953, the President promulgated Ordinance No. 6 of 1953, otherwise known as Dhoties (Additional Excise Duty) Ordinance of 1953 which provided for levy and collection of Additional excise duty on dhoties packed by mills in excess of the quota fixed for the purpose. On 28-11-1953, the Inspector of Central Excise issued a notice calling upon the petitioner to pay a sum of Rs. 52,395/6/-, which was the additional excise duty levied under the Ordinance. An appeal was taken by the petitioner to the Superintendent of Excise against the order of the Inspector of Excise. The appeal was dismissed by the Superintendent of Excise who considered that the notice issued against the petitioner was a valid notice. The petitioner preferred an appeal to the Collector of Excise, and on 6-4-1954, the Collector of Excise allowed the appeal and set aside the notice issued by the Inspector of Excise. The Collector of Excise took the view that Section 4 of the Ordinance authorised additional excise duty to be levied only in respect of excess quantity of dhoties "packed" during the quarter and not for excess clearance of dhoties above the quota fixed by the Textile Commissioner. The Collector of Excise considered that there was no proof that for the period from 26-10-1953 to 27-11-1963, the petitioner had packed 5,23,052 yards of dhoti. Meanwhile, Ordinance 6 of 1953 was repealed and Parliament passed an Act called Dhoties (Additional Excise Duty) Act, 1953, providing for the levy and collection of an additional excise duty on dhoties "issued out" of mills in excess of the quota fixed for the purpose. The Act was promulgated on 17-12-1953, but Section 1(3) of the Act expressly provided that the Act "shall toe deemed to have come into force on 26-10-1953". Under Section 4 of this Act the Inspector of Excise issued a notice calling upon the petitioner to pay additional excise duty of Rs. 52,395/6/-(vide annexure H). The petitioner preferred en appeal to the Superintendent of Excise, but the appeal was dismissed on 4-5-1954. The petitioner cook the matter in appeal to the Collector of Excise who said that the appeal could not be heard until the petitioner first deposited the amount of duty.

(3.) In this state of facts the petitioner has moved the High Court for grant of a writ in the nature of certiorari under Article 226 of the Constitution for the purpose of calling up and quashing the notice issued by the Inspector of Central Excise on 21-4-1954, demanding additional excise duty from the petitioner and also the order of the Superintendent of Excise dated 4-5-1954, affirming the validity of the notice.