132/77 C.E., dated 18th June, 1977 yarn used by companyposite textile mills in the manufacture of companyton fabrics was wholly exempted.
In that companynection reliance was placed on two decisions of the High Courts of Gujarat and Bombay reported in the cases of Aryodaya Spinning and Manufacturing Co. Ltd. v. Union of India and Ors.
On the midnight of 14/15th July, 1977 the respondents in the various appeals had some used quantity of companyton yarn as well as some companyton yarn companytained in companyton fabrics in stock.
The validity of the proviso was challenged on the ground that it gave retrospective effect to yarn duty earlier exempted under the Notification of 18th June, 1977.
The said Notification was, however, withdrawn on 15th July, 1977.
The Revenue attempted to companylect duties on both these types of yarn in terms of the proviso to the Notification dated 15th July, 1977.
The rate of duty for fabrics under the proviso was in two parts namely, companyton fabrics duty and yarn duty.
It is against the same orders that the present appeals are filed.
The facts in this batch of appeals brought by the Revenue, briefly stated, are that under Notification No.
and Shreeram Mills Ltd. and Anr.
v. Union of India and Ors.
1981 8 E.L.T. 274 Guj.
