{"id":235500,"date":"1985-06-21T00:00:00","date_gmt":"1985-06-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/somasundaram-mills-vs-collector-of-central-excise-on-21-june-1985"},"modified":"2019-01-05T23:51:02","modified_gmt":"2019-01-05T18:21:02","slug":"somasundaram-mills-vs-collector-of-central-excise-on-21-june-1985","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/somasundaram-mills-vs-collector-of-central-excise-on-21-june-1985","title":{"rendered":"Somasundaram Mills vs Collector Of Central Excise on 21 June, 1985"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Delhi<\/div>\n<div class=\"doc_title\">Somasundaram Mills vs Collector Of Central Excise on 21 June, 1985<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1986 (25) ELT 691 Tri Del<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p> K.L. Rekhi, Member (T)<\/p>\n<p>1. The appellants have, by their letter dated 15-2-1985, informed that they do not propose to present their case in person. They have requested that the matter may be decided on merits on the basis of their written submissions.\n<\/p>\n<p>2.   We have accordingly  taken up the  matter, heard the Department&#8217;s Representative  and examined  the  records.  The  facts of  the  case, in brief, are that during the period from January,  1976 to January, 1978, the appellants   manufactured   non-cellulosic   spun   yarn   and   removed   it   for  weaving into  fabrics within their mills.  They paid duty on  3,320 kgs. of such yarn on   the   basis   of   unsized   weight   of   the   yarn.   A   demand   for   differential duty   of   Rs.14,328\/-   was   issued   to   them&#8217;   under   Rule   9(2)   of   the   Central Excise  Rules  on  the  ground  that  duty  should have been paid on 3,917 kgs. of   the   yarn   on   the   basis  of  its  sized  weight.  The  demand  was  confirmed by   the   Assistant   Collector.   The   Appellate   Collector,   by   his   order   dated 8-2-1980,  upheld   the  charge  of duty  on  the basis of  the sized  weight but gave benefit of time bar under Rule 9(2) for the period on and from 6-8-1977 to   the   appellants.   Thereupon,   the   appellants   filed   a   revision   application before   the   Central   Government   (since   transferred to   this   Tribunal   and taken  up  as this appeal). Simultaneously, the  appellants applied for consequential   refund   of   Rs.5,184\/-   on   12-12-1980   to   get   the   relief   ordered by   the   Appellate   Collector.   The   Assistant   Collector   kept   quiet   for   about one   and   a   half   years.   After   Section   51   of   the   Finance   Act,   1982   was enacted   in   May,   1982   which   gave   retrospective  effect  to  amendments of Rules   9   and   49,   the   Assistant   Collector   issued   a   show   cause   notice   to he   appellants   on   15-6-1982   proposing   to   reject   their  refund   claim under Sub-section (2) of the said Section 51. By his Order-in-Original dated 22-7-82 the   Assistant   Collector   rejected   the   refund   claim   on   the   ground   that the   Order-in-Appeal   dated   8-2-1980   relied  on  by  the  appellants  for  their refund claim, being inconsistent with the amended Section 51(2), had become null  and  void.  The  Appellate  Collector, by his order dated 3-1-1983, confirmed the Assistant Collector&#8217;s order.\n<\/p>\n<p>3.    We have given our earnest consideration to the matter. We observe that Section 51  of the Finance Act, 1982 was a validating provision and its effect   was   to   put   the   charge   of   duty   on   deemed   removals  for  captive consumption, whether by continuous process or otherwise, beyond the pale of doubt. The appellants had never contested the charge as such. The dispute between them and the Department was only on the question whether the charge should be on the sized weight of the yarn or on its unsized weight. Though the question was decided against them by the Appellate Collector on 8-2-1980, he nevertheless gave the appellants partial relief on the ground of limitation. We find nothing in Section 51 to withdraw such a relief. The Appellate Collector&#8217;s order dated 8-2-1980 was not reviewed by the competent authority. That part of the order which granted relief, therefore, became final. We observe further that even on the question whether duty should be charged on sized weight or unsized weight of the type of yarn manufactured by the appellants, there are the following three High Court judgments in favour of the appellants and none against them:-\n<\/p>\n<pre>(1)  1981 E.L.T. 867 (Bombay) -  Shrinivas     Cotton     Mills     v.     U.O.I.\n \n\n(2)  1983   E.L.T.   239   (Delhi)   -   J.K.   Cotton   Spinning   &amp;   Weaving   Mills and Anr. v. U.O.I. and Ors.\n \n\n(3)  1983 E.L.T. 326 (Gujarat) - Arvind Mills Limited v. U.O.I. and Ors.\n \n\n<\/pre>\n<p>In the Delhi High Court judgment cited at (2) above, the question was considered in the context of the amended Rules 9 and 49 and Section 51 of the Finance Act, 1982. The High Court, in paragraph 30 of their judgment, held that sizing was a preparatory process in the course of weaving of fabrics. All the three High Courts held that in the case of a mill spinning yarn and then removing it for weaving of fabrics in an integrated process, the duty should be charged on the yarn before it was removed for sizing, i.e., on the unsized weight of the yarn.\n<\/p>\n<p>4. Accordingly, we set aside the impugned order, allow this appeal and direct that the consequential refund of Rs.14,328\/- shall be granted to the appellants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Delhi Somasundaram Mills vs Collector Of Central Excise on 21 June, 1985 Equivalent citations: 1986 (25) ELT 691 Tri Del ORDER K.L. Rekhi, Member (T) 1. The appellants have, by their letter dated 15-2-1985, informed that they do not propose to present their case in person. They have requested [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,33],"tags":[],"class_list":["post-235500","post","type-post","status-publish","format-standard","hentry","category-customs-excise-and-gold-tribunal-delhi","category-tribunal"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Somasundaram Mills vs Collector Of Central Excise on 21 June, 1985 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/somasundaram-mills-vs-collector-of-central-excise-on-21-june-1985\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Somasundaram Mills vs Collector Of Central Excise on 21 June, 1985 - Free Judgements of Supreme Court &amp; 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