Broad reading of "pottery" covered brick-kiln exemption, but relief ended when the certificate expired.

The term "pottery" in the 30 June 1979 exemption notification was construed broadly to include brick-making, because bricks are made from clay and hardened by heat. On that basis, a brick-kiln fell within the wider expression "cottage pottery industries" for the earlier exemption period. The later notification dated 31 January 1985, which expressly excluded bricks and tiles, was treated as confirming that bricks had been covered before that exclusion took effect. The exemption was nevertheless confined to the period during which the assessee held a valid Khadi Gramodyog certificate, so relief could extend only up to the date the certificate remained effective.

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Issues: Whether a brick-kiln falls within the expression "cottage pottery industries" in the exemption notification dated 30 June 1979, and whether the exemption was available only for the period during which the assessee held a valid Khadi Gramodyog certificate.

Analysis: The exemption under the notification was granted to institutions certified by the Khadi and Village Industries authorities for the sale of products of village industries specified in the schedule. The expression "pottery" was construed in its broad sense as including objects made of clay and hardened by heat. On that basis, bricks manufactured by moulding clay and baking it were treated as falling within the wider meaning of pottery industries. The later notification dated 31 January 1985, which specifically excluded bricks and tiles, was treated as indicating that bricks had been within the earlier exempted category until that exclusion took effect.

The exemption was, however, limited to the period for which the assessee actually held the requisite certificate. Since the certificate covered the assessment years 1982-83 and 1983-84 only up to 22 March 1984, the benefit could not extend beyond that date.

Conclusion: Brick-kiln was held to be covered by "cottage pottery industries" under the 1979 notification, but exemption was available only while the assessee held a valid certificate; relief was therefore confined to the certified period and denied for the later period.

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