Civil Writ Petition Appeal Nos. 346 and 347 of 1969. Case: Dayal Weaving Factory Vs Union of India and Ors.. High Court of Delhi (India)

Case NumberCivil Writ Petition Appeal Nos. 346 and 347 of 1969
CounselHajarnavis, N.M. Ghatate, Balakrishnan, B.B. Kishore and J.P. Gupta, Advs
JudgesS.N. Andley and Jagjit Singh, JJ.
IssueConstitution of India - Article 19
CitationILR 1970 Delhi 357
Judgement DateAugust 12, 1970
CourtHigh Court of Delhi (India)

Judgment:

S. N. Andley, J.

(1) This judgment will dispose of Civil Writs Nos. 346 and 347 of 1969. The petitioner in the former is the Dayal Weaving Factory and the petitioner in the latter is the Vinod Textiles. Petitioners are seeking the issuance of a writ etc. for quashing the order dated March 1, 1969 of the Central Excise Inspector, Panipat, direcing the petitioners (1) to maintain Rg I and Ed 4 account; (2) not to clear the stock under manufacture without payment of duty on Ar I at the rate of 12"% basic 2"% additional ad valorem and (3) to clearly segregate the units and get the store room within the factory approved immediately. The petitioners have also prayed for quashing the Central Excises and Salt Act, 1944, as set out in clauses 30(xii) die Central Excises and Salt Act, 1944, as set out in clauses 30(xii) and 33(ii) of the Finance Bill, 1969. It is necessary only to mention the facts in Civil Writ No. 346 of 1969 as the facts in Civil Writ No. 347 of 1969 are simlar.

(2) The petitioners have alleged that they are self employed small scale industrialists with an investment of Rs. 20,000.00 manufacturing cotton fabrics, particularly "tapestry and bed sheets".

(3) The petitioners' factory is being run under a license issued under the Central Excises and Salt Act, 1944, hereinafter referred to as "the Act". The manufacture of these commodities is being done on four handlooms. Cotton fabrics were subject to a duty of excise on the rates specified in the first schedule of the Act under item 19. Before the Finance Bill of 1969, the relevant part of entry 19 in the first Schedule of the Act read:-

"19.COTTON FABRICS- "Cotton fabrics" mean all varieties of fabrics manufactured either wholly or partly from cotton, and include dhoties, sarees, chadders, bed-sheets, bed-spreads, counterpanes and table-cloths, but do not include any such fabric- (a) if it contains 40 per cent, or more by weight of wool: (b) if it contains 40 per cent, or more by weight of silk; or (c) if it contains 60 per cent, or more by weight of rayon or artificial silk;

(1) Cotton fabrics, superfine-that is to Eighty paise per square metre. say. Fabrics in which the average count of yarn is 48s or more. (2) Cotton Fibrils, fins-that is to say. Eighty paise per square metre. fabrics in which the average count of yarn is 35s more but is less than 48s. (3) Cotton fabrics, medium-that is to say. Sixty paise per square metre. fabrics in wihch the average count of yarn is 17s or more but is less than 35s. (4 Cotton fabrics, coarse-that is to say. Sixty paise per square metre. fabrics in which the average count of yarn if less than 17s. (5) Cotton fabrics, not other wise specified Eighty paise per square metre.

A special procedure was prescribed for, inter alia, cotton fabrics produced on powerlooms by rules 96-1 and 96J of the Central Excise Rule. By these Rules, manufacturers who produced, inter alia, cotton fabrics in factories commonly known as powerlooms could make an application to the Collector for applying the special provisions to them and having regard to the average production of cotton fabrics in India per day per powerloom in such factories and any other relevant factor, the Central Government could fix, from time to time, the rate of excise duty per powerloom per quarter or per year. The petitioners made applications under these Rules and a fixed rate of Rs. 25.00 per power- Icorn was fixed in substitution of the duty of excise livable under item 19 in the first Schedule to the said Act. Then came the Finance Bill of 1969...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT