S. K. MUKHERJEE, J.

( 1 ) THE petitioner in this case has challenged a notice dated 12th January, 1973, issued by the Assistant Collector, Central Excise, Calcutta IV Division. By the said notice the petitioner has been asked to show cause as to why a penalty should not be imposed on it under Rules 9 (2), 56a (4) and 173q of the Central Excise Rules and as to why Central excise duty should not be demanded under Rules 9 (2) and 173q of the Central Excise Rules. To appreciate the alleged violation of the aforesaid rules committed by the petitioner, it is necessary to state certain facts leading to the issuance of the aforesaid impugned show cause notice. The petitioner manufactures cotton fabrics from cotton yarn. The said yarn is obtained from the sources (a) from open market and (b) from yarn manufactured in the petitioner's own factory. So far as the yarn obtained from open market is concerned, the petitioner was permitted to avail of the special procedure under Rule 56a of the Central Excise Rules. The petitioner had been maintaining subsisting the necessary registers and other books and forms in terms of the said Rule 56a and making adjustments by way of proforma credit. During

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