1987 (11) TMI 185

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.... for the Respondent. [Order per : G. Sankaran, Sr. Vice-President]. - The Assistant Collector of Central Excise, Jalandhar, passed an order on 12-11-1980, confirming a demand for Rs. 1,18,680/- against M/s. Mahavir Spinning Mills Ltd. Hoshiarpur (the respondents), as they had cleared 10,320 kgs. of acrylic yarn during the period from 22-6-1979 to 6-7-1979 but had not paid duty as required under....

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....o set out briefly the various notifications which are required to be considered. Notification No. 133/77, dated 18-6-1977 exempted woollen and acrylic spun yarn falling under Item No. 18B(i) of the First Schedule to the Central Excises and Salt Act from the whole of the duty leviable thereon subject to the condition that where the yarn had been spun wholly or partly out of acrylic fibre, it shall ....

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.... on acrylic yarn, spun out of acrylic fibre, which had suffered excise duty or additional duty of customs at the rate of Rs. 30 per kg. This practice apparently was not in accord with the effect of the above notifications. However, in view of the prevalent practice, the Central Government issued Notification No. 146/81, dated 18th July 1981, which is reproduced below :- "Notification No. 146/81-....

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....ce (Department of Revenue), No. 213/79-Central Excise, dated the 23rd June 1979, i.e. to say the period commencing on the 23rd June, 1979 and ending with the 12th July 1979 hereby directs that the whole of the duty of excise payable on such yarns, but for the said practice, shall not be required to be paid in respect of such yarns." 6. The contention of the Appellant Collector, in brief, is that ....