CASE STUDY ON SIDDESHWARI COTTON MILLS (P) LTD V. UNION OF INDIA & ANR, 1989 AIR 1019 by Debayan Samanta
Author: Debayan Samanta, Student at KIIT School of Law, Bhubaneswar
Bench- Venkatachalliah, M.N. (J)
The appellant was a cotton textile manufacturing industry that produced cotton fabrics on power looms that were excise duty-free. The Central Excise authorities found that appellant had broken the applicable laws by making and removing calendered cotton fabric that fell under item 19-l(b) of the Act’s First Schedule without paying the excise charge due. Under rule 173-Q, the Collector of Central Excise, Calcutta, ordered the appellant to pay the duty and assessed a penalty of Rs. 1,00,000. The appellant’s appeal was partially permitted by the Central Board of Excise and Customs, which, while affirming the imposition of the duty, setting aside the application of the penalty in an order dated 24.8.1982. The appellant’s subsequent appeal to the Appellate-Tribunal against confirmation of the levy and duty was dismissed by the Tribunal’s order of 16.3.1984, which is now under appeal.