Statutory deeming fiction for powerlooms defeated a contrary excise classification notice targeting roller locker machines.

Rule 96MMM of the Central Excise Rules, 1944 deems roller locker machines to be reckoned as powerlooms, with every metre of width counted as one powerloom where such machines are installed, whether alone or alongside other powerlooms. On that statutory footing, roller locker machines cannot be treated as outside the powerloom category for excise purposes. A show cause notice based on the opposite classification premise, including an attempt to place the nettings under a different tariff heading, lacked legal foundation and was misconceived. The issue was therefore decided in favour of the assessee.

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Issues: Whether roller locker machines are to be reckoned as powerlooms under Rule 96MMM of the Central Excise Rules, 1944, and whether the show cause notice proposing classification of the nettings under a different tariff heading was misconceived.

Analysis: Rule 96MMM expressly provides that where roller locker machines are installed, either exclusively or in addition to any other type of powerloom, every metre of the width of such machine shall be reckoned as one powerloom. On this statutory footing, roller locker machines could not be treated as outside the category of powerlooms. The notice proceeded on the contrary assumption and therefore lacked legal foundation.

Conclusion: The issue is answered in favour of the assessee. Roller locker machines are to be reckoned as powerlooms, and the show cause notice was misconceived.

Ratio Decidendi: Where a rule expressly deems roller locker machines to be reckoned as powerlooms, a contrary classification premise in excise proceedings cannot be sustained.

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