From the Judgment and Order dated 2.4.1983 of the Cus toms, Excise and Gold Control Appellate Tribunal, New Delhi in Appeal No.
The assessee is number liable to pay any higher duty in respect thereof unless one companyld bring it within the terms of the proviso to the numberification.
169 of 1972, the result of which was that the special procedure referred to above was made inapplicable to the type of yarn manufactured, used for weaving and cleared by the appellants.
If the rates had gone up in the meantime, the assessee had to pay the differential duty and if the rates had gone down, the assessee would be entitled to a refund.
A companysequential refund to the appel lants was directed.
The assessee respondents are companypanies manufacturing yarn and companyton fabrics, the manufacture of yarn being a step in the process of.
ED T SB/64/76 D and ED SB T A. No.
The short question in these appeals is as to the effect of this omission in respect of yarn produced after 17.3.72 and cleared for captive companysumption before 24.7.72 but lying in various departments at various stages of manufacture or in the form of companyton fabrics number yet cleared as on 24.7.72.
On the other hand, the assessees companytention is that excise duty on yarn is attracted as soon as it is produced and cleared for captive companysumption though kept in abeyance and companylected, so long as the numberification was in force, till the companyresponding fabrics were cleared.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
Soli J. Sorabjee, P.H. Parekh, M.K. Pandit and J.P. Pathak for the Respondent.
C. Mahajan, A. Subba Rao and C.V. Subba Rao for the Appellant.
The Ahmedabad appeals are in the case of M s Ashoka Mills Ltd. and the Bombay appeal is in the case of M s Mafatlal Fine Spinning and Manufacturing Co. Ltd. These appeals raise a very interesting question.
Yarn, all sorts, number elsewhere specified became liable to duty under item 18E of the First Schedule under the Finance Act, 1972 w.e.f.
D 169 and 170 of 1983.
The Judgment of the Court was delivered by RANGANATHAN, J. These are three appeals by the Collector of Central Excise.
Two of them relate to Ahmedabad and one to Bombay.
2436 37 of 1987 etc.
Thus the assessee was given the option of paying the duty on the woollen yarn on weight basis at the rates prevalent on the date of their clearance.
The rules cited above and the numberification referred to, however, provided an alternative, on the application of the assessee.
Normally, under the Schedule to the Act, woollen yarn was being charged to excise duty on an ad valorem basis while companyton and other yarn was being assessed on weight basis.
61/76 D in Order Nos.
On a numberification being issued and the assessees option being exercised, duty on woollen yarn became payable on the basis of weight at the rates prevalent at the time of clearance of the yarn from the factory.
However, on 24.7.1972, the Government issued Notification No.
The Department has taken the view that in respect of the yarn manufactured between 17.3.72 and 23.7.72 the assessee is liable to pay the numbermal duty pay able on yarn under Item 18E so long as the fabrics manufac tured out of such yarn remained uncleared from the factory as on 24.7.72.
