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Issues Involved:
1. Whether the laminated jute goods produced by the petitioner in its Converter Unit are subject to excise duty under Item 22A of the First Schedule to the Central Excises and Salt Act, 1944. 2. Whether the differential weight caused by the lamination process should attract excise duty. 3. The applicability of Rule 10 or Rule 10A of the Central Excise Rules in the context of the demand notice. 4. The maintainability of the writ petition in light of alternative remedies available under the Act. Detailed Analysis: 1. Excise Duty on Laminated Jute Goods: The primary issue was whether the laminated jute goods produced by the petitioner in its Converter Unit were subject to excise duty under Item 22A of the First Schedule to the Central Excises and Salt Act, 1944. The petitioner argued that the Converter Division was a separate unit from its jute mills, while the respondents contended that it was part of the same premises. The court examined whether the process of laminating jute cloth with polythene and other materials constituted the manufacture of new jute goods. The court concluded that merely coating jute cloth with a solution did not change its character into a new product. Thus, the laminated jute goods did not qualify as new jute goods under Item 22A, and no excise duty was chargeable on them. 2. Differential Weight and Excise Duty: The petitioner challenged the demand for excise duty on the differential weight caused by the lamination process. The court noted that the authorities were attempting to charge duty on the weight of materials used for lamination (polythene, gum tape, etc.), which was not permissible. The court held that no excise duty was chargeable on the differential weight, as it represented the weight of non-jute materials used in the lamination process. The authorities could not indirectly charge excise duty on these materials. 3. Applicability of Rule 10 or Rule 10A: The court did not find it necessary to decide whether Rule 10 or Rule 10A of the Central Excise Rules was applicable in this case. The primary focus was on the legality of charging excise duty on the differential weight of laminated jute goods. 4. Maintainability of the Writ Petition: The respondents argued that the writ petition was not maintainable due to the existence of alternative remedies under the Act, such as appeal and revision. The court acknowledged that while alternative remedies were available, the petitioner had already pursued these options without success. Given the circumstances, the court exercised its discretion to issue high prerogative writs, finding that it would be futile to require the petitioner to pursue further appeals and revisions. Conclusion: The court held that no excise duty was chargeable on the differential weight of laminated jute goods, as it represented the weight of materials used for lamination, not the manufacture of new jute goods. The impugned notice of demand was quashed as being without authority of law. The court issued a Writ of Certiorari quashing the demand notice and a Writ of Mandamus and Prohibition directing the respondents to refrain from enforcing the notice. There was no order as to costs.
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