TMI Blog1996 (7) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... nd have, therefore, the locus to challenge the reclassification. There is no forum other than the High Court under Article 226 where they can do so, and the High Court was in error in not entertaining the latter writ petition and referring the appellants to a civil suit. Insofar as the earlier writ petition is concerned, the High Court ought, for the same reason, to have dealt with the contention of the appellants that ammonium nitrate remained exempt from excise duty by reason of the Exemption Notification until 21st July, 1979, when ammonium nitrate was removed from the purview thereof. The judgments and orders of the High Court in appeal must be set aside. Appeal allowed. - 1589 of 1991 with 1590 of 1991 - - - Dated:- 24-7-1996 - S.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he subject of ammonium nitrate melt 80% used in the manufacture of explosives and its classification as a fertiliser. The letter stated that the matter had been examined in consultation with the Ministry of Chemicals and Fertilisers and that Ministry had stated that ammonium nitrate was not classified as a fertiliser in the Fertiliser Control Order and that in the event of ammonium nitrate being accepted as a fertiliser without further processing, the item would have to be included in the Fertiliser Control Order before it could be marketed as a fertiliser. Hence, the said ammonium nitrate fell outside the purview of Tariff Item No. 14HH. This being so, the question of exemption of duty under the said Exemption Notification did not arise. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t July, 1979, a notification was issued whereby ammonium nitrate was excluded from Exemption Notification No. 164/1969 with effect from 21st July, 1969. This notification was challenged by the appellants before the Orissa High Court in a writ petition (No. 86/1980). In the alternative, it was prayed that, in any event, upto the date of the notification, ammonium nitrate remained entitled to the exemption refund of duty amounting to Rs. 50,14,202 collected for the period 24th January, 1978 to 20th July, 1979, was sought. 8.On 5th February, 1990 the earlier writ petition (No. 86/1980) was dismissed on the ground that the notification dated 21st July, 1979 was not unconstitutional. The alternative prayer was not considered. 9.On the same d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods in relation to the use for which the goods are intended. Mr. Salve also drew our attention to the Bond which is required to be furnished by a person licensed to obtain excisable goods to be used for specified industrial purposes. It recites that the signatory has been permitted to purchase from time to time goods of the stated quantity of the goods for use for the manufacture of the commodities specified therein. It is one of the conditions of the Bond that excise duty, should it be demanded on the goods should be paid within ten days of demand. Mr. Salve submitted that, in the context, the burden of payment of excise duty under Tariff Item 68 upon the said ammonium nitrate fell upon the appellants and they were affected thereby. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case before us. 12.Mr. Vellappally, learned counsel for the respondent-Union of India, very fairly and rightly, did not dispute that the burden of the increase in excise duty, by reason of the reclassification of the said ammonium nitrate, would fall upon the appellants, and that, therefore, the appellants were entitled to agitate the validity of such reclassification and this could not be done in the civil suit that was contemplated by the High Court. 13.There is, in our view, no doubt that the reclassification of ammonium nitrate by the order of the Central Board dated November, (sic) 1980, casts upon the appellants the obligation to pay the excise duty that is leviable as a result. Such obligation does not arise merely by reason of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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