RELIANCE INDUSTRIES LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE issue for determination in the present appeal is the date on which Notification published under Section 38 of the Central Excise Act 1944 is deemed to take effect - - whether on the date of printing in the Official Gazette or from the date on which the Notification is made available to the public.

(2.) THE brief facts of the case are that the appellants herein manufacture inter alia polyester filament yarn and polyester staple fibre falling under Chapters 54 and 55 of the Schedule to the CETA. 1985. On 26.3.90. Notification 57/90 was issued whereby polyester filament yarn was chargeable to duty Rs. 55 per kg. and polyester staple fibre (manufactured out of duty paid DMT or PTA) was chargeable to duty @ Rs. 8.50 paise per kg. During the period from 15.12.90 to 17.12.90, the appellants cleared PSF and PFY on payment of duty as prescribed in the above mentioned Notification. On 17.12.90 at about 5.30 PM. the Assistant Collector visited the factory of the appellants and delivered to them a photo -copy of the telex dated 17.12.90 intimating the changes in duty structure and increase in rate of duty on PFY to Rs. 70/ - per kg. and increase in rate of duty on PSF to Rs. 10.50 per kg. On 18.12.90. the Assistant Collector enclosed to the appellants a copy of the telex dated 17.12.90 intimating the changes in duty structure in respect of the goods mentioned therein vide Notification mentioned therein. The appellants from then on started paying duty on PFY and PSF at the enhanced rate of Rs. 70 per kg. and Rs. 10.50 per kg. On 12.1.91. Notification 161/90 dated 15.12.90 amending Notification 57/90 was released for sale to the public. The Department issued a show cause notice on 2.5.91 demanding differential duty of Rs. 1.20.81,413/ - in respect of goods cleared between 15.12.90 and 17.12.90 on the ground that the enhanced rate as per Notification 161/90 would be applicable right from 15.12.90 itself. The appellants contention that, the Gazette was placed for sale to the public only after 17.12.90 and. therefore, they had paid the appropriate duty for the clearances made between 15.12.90 and 17.12.90 was rejected by the authorities below who held that the Notification came into effect from 15.12.90 i.e. the date given in the Official Gazelle. Hence this appeal.

(3.) WE have heard Shri J.J. Bhatt, learned Advocate and Shri U.K. Jain, learned SDR.