TMI Blog1993 (1) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... aid writ petitions under Article 32 of the Constitution of India. All these cases come under Item 18-I and/or 18-III and/or 18E of the Tariff contained in the Schedule attached to the Central Excises and Salt Act, 1944 (hereinafter referred to as `the Act'). For facility of reference we are giving the facts of the case of Civil Writ Petition No. 3 of 1983. 2. This writ petition is stated to be covered by the decision of this Court in J.K. Cotton Spinning and Weaving Mills Ltd. Another v. Union of India and Others - [1988] 1 S.C.R. 700 = 1987 (32) E.L.T. 234 (S.C.) and the surviving prayer in the writ petition is to declare that the duty of excise in respect of Tariff Item Nos. 18A(ii), 18(III)(ii) and 18E is to be levied and collected o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rongly issued a circular dated 24th September, 1980 purporting to interpret Rules 9 and 49 of the Central Excise Rules, 1944 (hereinafter referred to as `the Rules') and directing the subordinate excise authorities to levy and collect duty of excise in accordance therewith. In the said circular, the Board had directed the subordinate excise authorities that "use of goods in manufacture of another commodity even within the place/premises that have been specified in this behalf by the Central Excise Officers in terms of the powers conferred under Rule 9 of the Rules, will attract duty". As the said circular was being implemented to the prejudice of the appellants, they filed the writ petition before the Delhi High Court, inter alia, challengi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of the commodity as yarn. The writ petition was accordingly allowed in part, as stated aforesaid, and it was this decision which came up in appeal before this Court. This Court agreed with the Delhi High Court and upheld the vires of Rules 9 and 49 of the Rules as well as Section 51 of the Finance Act, 1982. This Court also agreed with the High Court that the retrospective effect given by Section 51 of the Finance Act, 1982 will be subject to the provisions of Sections 11A and 11B of the Act. This Court also agreed with the view of the High Court that the yarn which is produced at an intermediate stage in the mill of the appellants and subjected to integrated process of weaving the same into fabrics, would be liable to payment of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn does not lose its character as yarn." 6. The petitioner herein on the other hand approached the Gujarat High Court and the Gujarat High Court by its judgment dated 30th July, 1981 had, before the issuance of the impugned circular dated 24th May, 1982, taken the view that no duty can be levied on the weight of sizing material contained in yarn, falling under Tariff Item No. 18-III or 18E and directed that the duty levied should be refunded because the duty has been levied not on the basis of yarn at the spindle stage, but on the weight of the sized yarn. After the decision of the Gujarat High Court the Central Government had amended Rules 9 and 49 of the Rules and Section 51 of the Finance Act, 1982, had made them effective retrospectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sizing material) expressed in English Count. … ... Non-cellulosic Spun Yarn : "18E. Spun (discontinuous) yarn, in which man-made fibres of non-cellulosic origin, other than acrylic fibre, predominate in weight and, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power. Twenty-four rupees per kilogram. Explanation : Explanation III under sub-item III of Item No. 18 shall, so far as may be, apply in relation to this item as it applies in relation to that item." 9. It will be noticed from the aforesaid items that the measure for imposition of excise duty is by weight "per kilogram" in all the three items, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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