Zone classification for tea duty determined that Dibrugarh fell under the residuary rate before its later inclusion in Zone V.

Tea grown in Dibrugarh for the period from 5 November 1981 to 28 January 1982 was outside Zone V because the amending notification inserted the district into Zone V only from 28 January 1982. Applying the earlier binding Gauhati High Court view, the interregnum period attracted the residuary Zone VII rate, and duty collected above that rate was refundable. The stated result is that the excess duty for that period was liable to be repaid.

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Issues: Whether tea grown in the district of Dibrugarh during the period from 5-11-1981 to 28-1-1982 was liable to duty at the rate applicable to Zone V or Zone VII, and whether excess duty paid for that period was refundable.

Analysis: Notification No. 90/70-C.E. originally placed the area within Zone V, but after Notification No. 184/81 came into force, Dibrugarh was not specifically included in Zone V. The later amending Notification No. 9/82 expressly inserted Dibrugarh into Zone V only from 28-1-1982. The Court followed the earlier binding decision of the Gauhati High Court and accepted that for the interregnum period the district fell outside Zone V and attracted the residuary Zone VII rate. Any duty realised above that rate was therefore liable to be refunded.

Conclusion: The duty for the relevant period was payable at the Zone VII rate and the excess collection was refundable; the appeal succeeds.

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