Judgment

GROVER, J. : All these appeals by special leave against the orders made by the Central Government under section 36 of the Central Excises and Salt Act, 1944, hereinafter called the "Act", involve common questions and shall stand disposed of this judgment.

2. The facts and circumstances relating to C. A. 976 of 1966 may alone be stated. The appellant carries on business, inter alia of manufacturing and selling various kinds of paper and boards at its factory at Brajrajnagar in the district of Sambalpur in the State of Orissa. It manufactures various types and qualities of paper. It is stated that there are three types of paper which are principally manufactured. Those are Creamwove paper, map litho paper and writing paper. In the appeal the facts of which are under consideration we are concerned with creamwove paper on which excise duty was levied. From the year 1960 till July 1961 creamwove paper was being assessed as printing and writing paper under item 17 (3) of the First Schedule to the Act, the rate being 35 np. per Kg. Sometimes in July 1961 the Central Excise authorities required the appellant to send samples of the said paper to the Chemical Examiner of the Central Excise authorities for the purpose of chemical test. The appellant received a letter dated August 10, 1961 from the Superintendent, Central Excise. In a footnote it was stated that this paper of gram weight 116 and above per sq. metre was to be assessed under item 17 (10) in view of the Chemical Examiner s report. It is not disputed that the rate under that item would be the same as under item 17 (1). The Collector of Customs issued instructions to the Deputy Superintendent whose duty was to make assessment of the appellant directing him to assess creamwove paper of a certain weight under item 17 (1) of the tariff at the rate of 50 np. per kg. with effect from September 5, 1961. By means of a letter dated September 7, 1961 the Deputy Superintendent informed the appellant that in accordance with the decision of the competent authority creamwove paper of the weights mentioned in the latter would be assessable as cartridge paper under item 17 (1) of the tariff in the Schedule. It was further stated that

"I have also been directed to serve demands for short levy of excise duty on past clearances of creamwove paper, where due."

The Deputy Superintendent addressed another letter dated September 13, 1961 to the same effect. It was added therein that map litho paper weighing 85 grams per sq. metre and above was also to be taken as cartridge paper for the purpose of assessment under item 17 (1) as per the decision of the competent authority. On September 19, 1961 the appellant made an inquiry from the Deputy Superintendent as to the basis on which classification in the matter of assessment of duty had been made. The Deputy Superintendent sent the following reply on September 20, 1961 :

" ............. I am to inform you that the classifications as intimated to you in respect of the above-mentioned varieties of paper are as per decision of the competent authority".

It was further admitted in the letter of the Asstt. Collector Cuttack to the Collector. Central Excise dated April 7, 1962 that the classification of the paper in question was made under item 17 (1) of the tariff as cartridge paper in accordance with instructions contained in the Collector s letter of September 5, 1961. The Deputy Superintendent had made the assessment accordingly. As regards the copy of the Chemical Examiner s Report it was stated that the matter had been referred to the higher authorities.

3. The Deputy Superintendent, Central Excise, had collected the excise duty on creamwove paper in accordance with item 17(1) of the tariff for the months of June and July 1962. The appellant lodged a claim with the Assistant Collector of Central Excise for refund of Rs. 38,809.81 being the sum assessed in excess. The Assistant Collector rejected the claim on the ground that no overcharge had been mad