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Issues:
1. Whether excise duty can be levied on imported P.V.C. powder held by petitioners before the amendment to the Central Excise and Salt Act, 1944. 2. The validity of the notices demanding excise duty on the stock of P.V.C. powder held by the petitioners on the midnight of 28th February 1961. Detailed Analysis: 1. The judgment addressed the issue of whether excise duty could be imposed on imported P.V.C. powder held by the petitioners before the legislative amendment. The petitioners imported P.V.C. powder for their manufacturing process. The Central Excise and Salt Act, 1944 was amended in 1961 to include P.V.C. powder as an excisable good. However, the duty was applicable only to P.V.C. powder manufactured in India post the amendment. The petitioners possessed imported P.V.C. powder before the legislative change, and the amendment did not impose duty retroactively on existing imported stock. The court held that excise duty could not be levied on the imported P.V.C. powder held by the petitioners before the legislative amendment, as it was not produced or manufactured in India. 2. The judgment also delved into the validity of the excise duty notices issued to the petitioners. The Excise Inspector sent multiple notices demanding excise duty on the stock of P.V.C. powder held by the petitioners on the midnight of 28th February 1961. The demand was based on the amended legislation, which the court found inapplicable to imported P.V.C. powder held before the legislative change. The court noted that the demand for excise duty on the imported P.V.C. powder stock was unjustified. Consequently, the court ruled in favor of the petitioners, quashing the notices and the order confirming the demands. The judgment concluded by granting a writ of mandamus to annul the notices and the Assistant Collector's order, with costs awarded to the petitioners.
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