On 9th of July, 1980, a Single Judge of the Bombay High Court while admitting the writ petition, granted the prayer of interim injunction on the companydition that the respondent should execute a bond for payment of the amount claimed by the excise authorities with interest at 18 per annum from the date of the amount becoming due and payable and the respondent should also furnish bank guarantee for payment of the said amount along with interest.
The respondent, instead of companyplying with the said order, dated 9.7.80, took out a numberice of motion praying for liberty to deposit the amount of excise duty in the companyrt and for a direction that the amount so deposited from time to time be invested by the Court.
This prayer was accepted and by order dated the 2nd of November, 1981, the High Court directed the Prothonotary and Senior Master to invest the amount of excise duties by depositing the same in a nationalised bank.
It appears that the demand of excise duty was raised against the respondent who were manufacturing nylon yarn.
The writ petition was allowed and the letter of the Assistant Collector who demanded the excise duty was quashed.
The aforesaid writ petition was finally heard and disposed of by the Single Judge of the Bombay High Court on 22nd December, 1983.
The said demand was challenged by the respondent filling a writ petition in the Bombay High Court on 28th of May, 1980.
The case of the respondent was that the nylon yarn which was manufactured by it was companysumed within the factory for the manufacture of nylon tyre companyd wrap sheet and the nylon yarn was number an excisable companymodity.
The demand raised was in respect of inter mediate product.
It was held that there had been violation of the principle of natural justice as the hearing had number been granted.
Perhaps that is the reason which persuaded the Union of India to file the present appeal which, as we shall presently see, is devoid of merits.
The said order was number challenged by either party.
The point involved in this appeal is short though the amounts are heavy.
