Concessional excise duty notification upheld; gross-weight assessment accepted for phenol formaldehyde resin without excluding water content.

A concessional excise duty notification for phenol formaldehyde resin was upheld as a valid exercise of rule-making power, and the fact that the concession allegedly produced a heavier burden than the tariff rate did not, by itself, make it ultra vires. The assessee had voluntarily opted for the concession, which supported application of the notification. The Court also found no statutory requirement to assess duty only on solid content after excluding water content, so the department's gross-weight method was accepted. The challenge to both the notification and the assessment basis therefore failed, and the duty demand was sustained.

---

---

Issues: Whether the notification granting concessional excise duty on phenol formaldehyde resin was ultra vires or otherwise invalid, and whether duty could be levied on the resin without excluding its water content.

Analysis: The concessional notification was issued under the rule-making power and the petitioner had voluntarily opted for the concession. The challenge that the concession resulted in a heavier burden than the tariff rate did not establish invalidity. The Court also found no statutory rule requiring the department to levy duty only on the solid content by excluding water content, and the departmental view treating the product on gross weight was accepted.

Conclusion: The challenge to the notification and the assessment method failed, and the duty demand was upheld against the petitioner.

---