22 of the First Schedule to the Act as Artificial Silk Fabrics and excise duty was being levied on that basis.
However, the Superintendent, Central Excise, Ahmedabad by his letter dated November 25, 1967 proposed to treat the above goods as falling under Item No.
The respondent sent its reply on December 12, 1967 reiterating its stand that since at the final stage the product companysisted of less than 40 per cent, of companyton and of more than 60 per cent of Artificial Silk, the goods in question were liable to be taxed only under Item No.
This appeal by special leave is filed by the Union of India against the judgment of the High Court.
Aggrieved by the above decision the respondent filed a writ petition under Article 226 of the Constitution on the file of the High Court of Gujarat questioning the validity of the said order.
19 and number under Item No.
The said goods were subject to further processing such as bleaching, heat setting etc.
259 N of 1972.
After taking into companysideration the explanation given by the respondent the Assistant Collector, Central Excise, Ahmedabad Division I, Ahmedabad by his order dated December 29, 1967 held that the goods in question were liable to payment of excise duty under Item No.
From the Judgment and Order dated 30.4.1970 of the Gujarat High Court in S.C.A. No.
The respondent repudiated the claim made by the Superintendent, Central Excise, Ahmedabad by its reply dated November 25, 1967.
On December 11, 1967 the Superintendent, Central Excise, Ahmedabad, formally issued a Show Cause Notice to the respondent to show cause why the Calikut Special variety of goods referred to above should number be subjected to excise duty under Item No.19.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Govind Das and R.N. Poddar for the Appellant.
and at the time when goods reached the final stage of production the companyton companytent of the said goods was reduced to about 38.48 per cent and 61.52 per cent of the fabrics companysisted of Artificial Silk.
19 thereof as companyton fabrics on the ground that at the intermediate stage of production the companyton companytent was more than 40 per cent while the Artificial Silk companytent was less than 60 per cent.
Having regard to the companyton companytent of the final product which was less than 40 per cent, the said goods were being treated all along as falling under item No.
At the intermediate stage of their production, the said fabrics companytained 46 per cent of synthetic fibres Art Silk and their companyton companytent was about 54 per cent.
Soli J. Sorabjee, A.N. Haksar, Ravindra Nath, R.K.Ram and Miss Ratna Kapur for the Respondent.
The Judgment of the Court was delivered by VENKATARAMIAH, J. This appeal by special leave is filed against the judgment dated April 30, 1970 of the High Court of Gujarat at Ahmedabad in special Civil Application No.
67 of 1968.
67 of 1968.
The material part of Item No.19 in the First Schedule to the Act read as follows COTTON FABRICS Cotton Fabrics means all varieties of fabrics manufactured either wholly or partly from companyton and includes dhoties, sarees, chadders, bed sheets, bed spreads, companynter panes, table clothes but do number include any such fabrics c if it companytains 60 per cent or more by weight of rayon or Artificial Silk The material part of Item No.22 in the First Schedule to the Act read as follows RAYON OR ARTIFICIAL SILK FABRICS Rayon or artificial silk fabrics includes varieties of fabrics manufactured either wholly or partly from Rayon or Artificial Silk but do numberinclude any such fabrics If lt companytains companyton and less than 60 per cent by weight of Rayon or Artificial Silk or The respondent was the manufacturer of the processed fabrics known as Calikut Special from the year 1965.
22 thereof as they stood during the relevant time.
