1975 (1) TMI 33

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....Rule 8 of the Central Excise Rules is ultra vires of said rules and the Central Excises and Salt Act. 2. The article, on which duty has been sought to be levied, is Phenol Formaldehyde Resins. As shown against Item No. 15A in the First Schedule to the Central Excise and Salt Act (hereinafter referred to as "the said Act"), thirty per cent ad valorem duty is liable to be paid on the synthetic resins in any form, whether solid, liquid, or pasty or as powder, granules or flakes or in the form of moulding powders. However, by virtue of powers conferred under Rule 8 of the Act, the Central Government had exempted from excise duty any sum that may exceed 80 paise per kg. of such phenol, i.e. Resin, as per its order dated, 23 September, 1965. ....

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....rtificial resin is actually first manufactured in the factory, and on the entire products in case it contains not more than 50% by weight of volatile organic solvents at the time of clearance/use within the factory". 5. Mr. Sen has not been able to satisfy us that this circular, which, he submits, he has received from the Central Board of Revenue, is issued in pursuance of any statutory authority to do so. We, therefore, cannot take this circular, for whatever it may be worth, into our consideration in deciding this writ matter. 6. We are only required here to examine whether the Notification dated 23rd September, 1965, issued under Rule 8 of the Central Excise Rules is in contravention of any statutory rule or statutory authority, is....