Exemption notification for drill narrowed to controlled drill, and printed drill stayed outside the concession for both periods.
An amended textile exemption notification substituting "controlled drill" for "drill" narrowed the concession so that, after 30.11.1979, only goods answering the controlled drill description remained eligible for the 50% duty concession. The earlier definition of drill covered grey, bleached or piece-dyed cloth, whether or not mercerised or pre-shrunk, and printed drill did not fall within that category. As the goods were admittedly printed and not shown to be grey, bleached or piece-dyed, printed drill was also outside the concession for the earlier period. The refund claims therefore failed.
Issues: (i) Whether, after amendment of Notification No. 226/77 by Notification No. 301/79, any drill not answering the description of controlled drill remained entitled to the 50% concessional rate of duty; (ii) Whether printed drill was entitled to the concessional rate even before 30.11.1979.
Issue (i): Whether, after amendment of Notification No. 226/77 by Notification No. 301/79, any drill not answering the description of controlled drill remained entitled to the 50% concessional rate of duty.
Analysis: The original exemption covered drill as defined by the Textile Commissioner under the Cotton Textile (Control) Order, 1948. The amending notification substituted the expression "controlled drill" in place of "drill", indicating a narrowing of the concession. The amended language confined the benefit to drill answering the description of controlled drill.
Conclusion: The concession after 30.11.1979 was available only to controlled drill. The issue was against the assessee.
Issue (ii): Whether printed drill was entitled to the concessional rate even before 30.11.1979.
Analysis: The relevant definition of drill covered grey, bleached, or piece-dyed cloth, whether or not mercerised or pre-shrunk. Printed drill did not fall within those categories. Since the goods were admittedly printed and not shown to be grey, bleached, or piece-dyed, they did not satisfy the definition of drill for the earlier period.
Conclusion: Printed drill was not entitled to the concessional rate even before 30.11.1979. The issue was against the assessee.
Final Conclusion: The exemption was confined by the amended notification to controlled drill, and printed drill was outside the relevant definition for the earlier period; accordingly, the refund claims failed.
Ratio Decidendi: Where an exemption notification is amended to substitute "controlled drill" for "drill", the concession is restricted to goods answering that amended description, and goods not falling within the Textile Commissioner's definition of drill cannot claim the benefit.
TaxTMI 
AI Drafter ✕
TaxTMI 
