Exemption for handloom cloth extends to retail cut pieces sold within the price limit, even if the original length costs more.

An exemption for handloom woven cotton or silk cloth priced at not more than Rs. 10 a piece was construed to cover small retail cut pieces taken from a larger length, because the notification did not expressly exclude such cut pieces and the phrase "cloth of all kinds" was given its natural meaning. The higher price of the original length did not defeat exemption where the individual cut pieces were sold within the prescribed price limit. The issue was answered in favour of the assessee, and the exemption was extended to the retail cut pieces.

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Issues: Whether item 20 of the Government notification exempting handloom woven cotton or silk cloth of all kinds where the price does not exceed Rs. 10 a piece applies to small retail cut pieces taken from a larger piece whose price exceeds Rs. 10 per piece.

Analysis: The notification did not expressly exclude cut pieces from the exemption. The expression "cloth of all kinds" was capable of including cut pieces as well as entire pieces of cloth. If the intention had been to deny exemption to cut pieces from a larger length, the notification would have said so clearly. Giving the words their natural meaning, the exemption was held to extend to the retail cut pieces sold at a price not exceeding Rs. 10 a piece, irrespective of the price of the larger "than" from which they were cut.

Conclusion: The question was answered in the affirmative and in favour of the assessee.

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