JUDGMENT : Flax fabrics falling under Item 22AA of the First Schedule was exempt from payment of duty by notification issued on 2nd January, 1973. The notification was rescinded on 18th June, 1977 and flax fabrics became dutiable. 2. The question that arises for consideration is whether the flax fabrics manufactured by the respondent prior to 18th June, 1977 but cleared after it could be subjected to duty. The law was settled by this Court in two decisions in Collector of Central Excise v. Kalinga Paints & Chemicals Industries - 1989 (44) E.L.T. 598 and Collector of Central Excise v. Newman Press - 1990 (48) E.L.T. 626 . 3. In the result the appeal succeeds and is allowed. The order of the Division Bench and that of the learned Single Judge are set aside and the order passed by the Collector is restored. The parties shall bear their own costs.