DIPAK KUMAR SEN, J.

( 1 ) THE facts and proceedings leading up to this appeal are shortly as follows:

( 2 ) THE Indian Rayon Corporation Ltd. , the appellant, carries on business under the name of style of Jayashree Textiles and Industries at Rishra in the district of Hooghly, West Bengal where the appellant owns and runs a factory. The appellant at the material time manufactured flax fabrics at the said factory.

( 3 ) FLAX fabrics were at the relevant time, included as an item in the Tariff Schedule to the Central Excises and Salt Act, 1944, under Serial No. 22aa and was made subject to an ad valorem excise duty of 15%.

( 4 ) BY a Notification No. 63/73 dated the 1st March, 1973 all textile fabrics falling under the said Item No. 22aa of the Tariff Schedule including flax fabrics were wholly exempted from excise duty.

( 5 ) ON or about the 18th June, 1977 Item No. 22 AA in the Tariff Schedule of the Act was amended. Under the amended item flax fabrics, in which flax predominated in weight, 15% ad valorem duty was included. By another Notification No. 138/77 dated the 18th June, 1977 the earlier exemption Notification No. 63/73 dated the 1st March, 1973 was rescinded.

( 6 ) ON

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