1987 (2) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....: "Pending disposal of the aforesaid Writ Petition, it is ordered by this Court that collection of excise duty as a fabric be and the same is hereby stayed. It is further ordered that the petitioner shall however continue to pay excise duty as yarn and shall further maintain an account in square metres for future clearance." The said Writ Petition was ultimately dismissed by the High Court on 16-2-1981. The operative part of the Court's final order ran thus : "For the reasons aforesaid, we make the following order :- (i) Rules discharged; (ii) We decline to interfere at this stage leaving open to the petitioner to urge all the contentions in reply to the show cause notices." 3. On 20th May, 1982, a notice to show cause was....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on had been stayed by an injunction or order; in other words, the section requires an order or an injunction which stays the institution of the suit. And so in cases falling under Section 15, the party instituting the suit would by such institution be in contempt of court. ....   ....   ....   ....   ....   ....   ....   .... But, in our opinion, there would be no justification for extending the application of Section 15 on the ground that the institution of the subsequent suit would be inconsistent with the spirit or substance of the order passed in the previous litigation......" 6. In the instant case, the order of stay passed by the Karnataka High Court had on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Co. Ltd. - (1971) 3 SCR 506 = 1978 (2) E.L.T. (J 399) (S.C.), at page 514 stated : `.....The charging provision Section 3(1) specifically says "there shall be levied and collected in such a manner as may be prescribed the duty of excise...." It is to be noted that sub-section (1) uses both the expressions "levied and collected" and that clearly shows that the expression 'levy' has not been used in the Act or the Rules as meaning actual collection.' 8. The High Court having direct stay of collection had, therefore, not given any interim direction in the matter of issue of notice or levy of the duty. The Explanation in clear terms refers to stay of service of notice. The order of the High Court did not at all refer to service of notice....