( 1 ) THIS group of petitions is referred to this Bench to decide the question whether the petition abates on the grounds mentioned in the affidavit of the respondents. These petitioner were filed by the peti- tioner-mill companies which are cotton textile units manufacturing blended yarn which became dutiable for the first time under Tariff Item 18-E which was added on March 16 1972 in the Central Excise and Salt Act 1944 (thereinafter referred to as the Act ). It is the case of the petitioners that blended yarn was coated with sizing materials to impart strength to the yarn in the weaving process in all these composite mills and in that process the weight of the blended yarn increased by some 12 to 14 per cent. It is the case of the petitioners that blended yarn remained blended yarn even after the sizing process. The excise duly was paid on the sizing materials. In all these mills the duty was charged by the excise authorities under Tariff Item 18-E on weight basis per kilogram of unsized yarn that is to say at the spindle point. However by the Trade Notice issued by the Deputy Collector of Central Excise No. 195/76 dated August 9 1976 a change of basis had been adopted. The said made notice had been comm- unicated by the Millowners Association to these petitioner-mills on August 14 1976 by Annexure A as under:a question has arisen whether central excise duty on yarn all sorts (N. E. S) failing under Tariff item No. 18-E of the Central Excise Tariff manufactured in a compo-- site mill and used in the weaving of fabrics in the same mill should be charged at spindle stage or at the stage of cones bobbins and beams etc.

( 2 ) IT is decided that the accounting of the yarn in R. G. 1 Register may be made at the spindle point but for E. B. 4 Register or assessment of duty the weight of the yarn at the stage of cones bobbins and beams etc. should be taken into account.

( 3 ) ALL trade associations chamber of commerce and the members of the Regional Advisory Committee are requested to bring this to the notice of their members/ manufacturers. Thereafter the Superintendent of Central Excise by the letter at Annexure B dated August 28 1976 informed all the units on this question of assessment of duty on yarn used in composite textile mills for the manufacture of fabrics by giving the following instructions: your attention is invited to M. P. Trade Notice No. 95 76 (Yarn NES No. 2/76 dated 9-8-76. 2 As directed in para 2 of the said trade notice the accounting of the Yarn in R. G. I Register may be made at the spindle point but for E. 13. 4 Register or assessment of duty the weight on the yarn at the stage of cone bobbins and beams etc. should be taken into account. (3) You are therefore requested to get authentication in E. B. 4 Register imme- diately and maintain the same as per the above trade notice. The Superintendent also addressed a further communication finally at Annexure F to the petitioner-mills on the subject of assessment of this NES yarn as under: 4 you are already directed by me that for purpose of assessment of the yam in question the weight of the yarn should be taken at cones beams bobbins stage etc. but so far I find that you pay duty on the yarn in question at spindle stage. So please adopt the procedure for payment of duty by the stages mentioned above when the yarn is actually taken for use. You are further requested to furnish this office the quantity of sizing materials used for sizing the yarn for the following period:4 to 31-8-76. Sept. 76. You are hereby instructed to furnish the particulars of sizing materials used every month. Please treat this as must urgent. 2 It is the case of the petitioners that since the issue of the licence by the excise authorities for the manufacture of these polyester blended textiles the petitioner had been consistently assessed to excise duty on yarn at spindle point and they maintained personal ledger account as provided by the Act and the Rules under the relevan