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of <h1>Show cause notice voided due to limitation; duty on unsized yarn weight at spindle stage.</h1> <h3>NAVSARI COTTON AND SILK MILLS LTD. Versus UNION OF INDIA</h3> NAVSARI COTTON AND SILK MILLS LTD. Versus UNION OF INDIA - 1992 (60) E.L.T. 110 (Guj.) The High Court of Gujarat at Ahmedabad ruled that a show cause notice issued to a mill company for differential excise duty was beyond the period of limitation. The notice was quashed, and the petition was partly allowed. The duty should be levied on the weight of unsized yarn at the spindle stage, not on the sized yarn. The decision was influenced by the Supreme Court case of M/s. J.K. Cotton Spg. & Wvg. Mills Ltd. v. Union of India.
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