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Issues:
Classification of manufactured goods under Central Excise Rules and Notification No. 50 of 1968, denial of concessional rate of duty, reliance on extracts from letters by Appellate Collector, approval of manufactured goods by Directorate General of Technical Development, entitlement to refund of excess duty paid. Detailed Analysis: The petitioners, engaged in manufacturing P.V.C. underground and overground telephone cables, sought exemption under Notification No. 50 of 1968, which originally imposed a 5% ad valorem duty on specific telecommunication cables. However, the Superintendent of Central Excise classified the goods under a different category attracting a higher duty of 12% ad valorem. The petitioners' appeals and revision applications were initially dismissed, leading to a refund claim for excess duty paid between 1968 and 1973. The matter was eventually taken to the Gujarat High Court, which set aside the revisional authority's order and remitted it back for fresh adjudication by the Appellate Collector. The Collector, Central Excise (Appeals), Bombay, subsequently dismissed the appeal, prompting the petition challenging this decision. The learned Counsel for the petitioners argued that the Collector's order was flawed as it relied solely on extracts from letters without considering the petitioners' claim properly. The extracts, one from the Director General, Posts and Telegraphs, and the other from the Directorate General of Technical Development, were insufficient and lacked crucial details regarding sample forwarding, examination, and opinion sources. The Court deemed it unfair for quasi-judicial authorities to base decisions on incomplete extracts and highlighted the necessity for full disclosure and fair treatment of parties in such proceedings. The reliance on these extracts was deemed irregular and unsustainable, especially since the petitioners were denied the opportunity for cross-examination. Moreover, the petitioners presented evidence of approval by the Directorate General of Technical Development for manufacturing cables specifically for underground use, which further supported their claim of producing telecommunication wires and cables eligible for the concessional duty rate under the exemption notification. The Court found merit in this evidence and ruled in favor of the petitioners, declaring their entitlement to the refund of excess duty paid due to the misapplication of the notification by the authorities. The respondents were directed to calculate and award the refund within three months, with no costs imposed on either party. In conclusion, the judgment addressed the classification of manufactured goods, denial of concessional duty rate, improper reliance on extracts by the Appellate Collector, approval of goods by the Directorate General of Technical Development, and the petitioners' entitlement to a refund of excess duty paid, ultimately ruling in favor of the petitioners based on the evidence presented and the missteps in the previous adjudications.
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