JUDGMENT A.N. Varma, J.
1. This petition is being finally disposed of after hearing learned counsel for the petitioner as well as learned Standing Counsel.
2. The case of the petitioner is that it is manufacturing cotton textile goods one of which grey sheet which is popularly called "sathia Chadar" which is manufactured in mills Nos. 1 and 2 of the petitioner. According to the petitioner the goods fall under Tariff entry 52.05 which reads as under:
"COTTON FABRICS-
(a) Woven, and
(b) Not subjected to any process."
3. Accordingly in March, 1986 the petitioner submitted classification list after the enforcement of the Excise Tariff Act, 1985 classifying them under Tariff Entry 52.05. The same was returned by the Superintendent, Central Excise Range-V, Kanpur vide his letter dated 11-5-1988. Stating that the goods described by the petitioner as '660 Grey Bed Sheets' were wrongly classified as an item falling under entry No. 5205.00 and they should be classified under Tariff Item No. 63.01. The petitioner was accordingly required to submit a fresh classification list classifying the 'Grey Bed Sheets' being manufactured by it as liable to excise duty at 12 per cent adv. under tariff entry No. 63.01. This communication was stated to have been sent by Superintendent, Central Excise under orders of the Assistant Collector. The order stated to have been passed by the Assistant Collector was however not supplied to the petitioner nor was it filed with the counter affidavit. We accordingly deferred the hearing of this case and asked the petitioner to apply for a copy of that order with a direction to the respondents to supply the same.
4. Today the learned standing counsel for the respondents has stated before us on the basis of an affidavit filed on behalf of the department that no such order in the prescribed form passed by the competent authority is available on record. We think that the controversy arising out of the communication of the Superintendent, Central Excise referred to above, which is subject of challenge in this case, should have been dealt with by the competent authority who should have passed a reasoned order in the prescribed form. Undisputedly the Superintendent, Central Excise had no authority to reject the classification list submitted by the petitioner.
5. We accordingly dispose of this petition with the direction that the Assistant Collector, Central Excise may pass a reasoned order in this matter after hearing the petitioner. We further direct that till the Assistant Collector passes the order, the petitioner may be allowed to clear 'Grey Bed Sheets' called "Sathia chadar" as an item falling under Tariff Item 52.05 subject to the condition that the petitioners furnish bank guarantee representing the amount of excise duty worked out on the basis of Tariff Entry No. 63.01. The bank guarantee which shall be in favour of Collector, Central Excise, Kanpur may be filed within 10 days of the clearance of the stocks failing which this order shall become ineffective.
6. Let a certified copy of this order be issued to the learned counsel for the petitioner on payment of usual charges within three days.