Powerloom ownership change without altering loom count does not trigger higher duty under the amended exemption notification.

A change in the ownership constitution of powerlooms by adding partners, without any increase or reduction in the number of looms, did not attract the higher rate of duty under the first proviso to Notification No. 41/65 dated 28-2-1965. The amended notification exempted amendment cases where the number of powerlooms remained unchanged, and that condition was satisfied here. As the factual basis for applying the higher duty was absent, the duty demand could not be sustained and the higher rate was not payable.

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Issues: Whether the change in ownership of powerlooms by addition of partners, without any reduction or increase in the number of looms, attracted liability to pay duty at the higher rate under the first proviso to Notification No. 41/65 dated 28-2-1965.

Analysis: The notification as amended exempted amendment cases from the higher rate where the amendment did not involve reduction or increase in the number of power looms. The change in the assessee's constitution was only an addition of partners and did not alter the number of powerlooms. In such circumstances, the factual basis for invoking the higher rate of duty was absent, and the demand could not be sustained.

Conclusion: The higher rate of duty was not payable, and the demand was unsustainable.

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