ADITYA MILLS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal by M/s Aditya Mills Limited, a company stated to be owning and running a spinning mill at Madangarh, Kishanganj, State of Rajasthan, (hereinafter referred to as the Company) is directed against an order passed by the Appellate Collector, Central Excise, Delhi on 22 -2 -1980, upholding an order passed by the Assistant Collector of Central Excise, Ajmer dated 3 -7 -1979.

(2.) THE facts giving rise to the controversy, as stated in the grounds of appeal, are that the petitioner -company had filed a Classification List on 10 -4 -1978 as required under Rule 173 -B of the Central Excise Rules, 1944 and had, inter alia, shown one of its products styled as 'PPRF' against column 5 of the proforma list, indicating that this yarn the company considered to be not exigible to any excise duty, having been prepared out of duty paid yarn. However, this list was returned by the concerned Inspector intimating the company that this view was not acceptable to the Department and that this product was leviable to excise duty under Tariff Item 68. The Company was accordingly required to file a fresh Classification List, to which the Company complied, though under protest. Thereafter, without raising any dispute about the classification, independent of the protest, expressed while filinga revised Classification List under directions of the concerned Inspector, the Company applied for refund of the duty paid at the rate of 5% ad valorem on the aforesaid yarn, covering the period 28 -4 -1978 to 30 -9 -1978, and the amount was computed to be Rs.84,651.77.

(3.) IT was this refund claim which was disallowed by the Assistant Collector, on the view that since the Company had not disputed the classification, as conveyed to them by way "of appeal; they would be deemed to have accepted the said classification as determined by the Department, and so the Central excise duty was rightly levied and collected and their refund claim was liable to rejection.