2007 (10) TMI 505

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....s from out of powerloom and as such exempted from paying cess. 2. The ld. Counsel for the Appellant has argued that the Appellants are engaged in processing of textile fabrics and these fabrics are produced through a powerloom. While arguing, our attention is drawn to the proviso to Section 5A (1) which reads as follows: "Provided that no such cess be levied on textiles manufactured from out of handloom or powerloom industry". The ld. Counsel has stressed on the proviso wherein it is very specific that no cess can be levied on textiles manufactured from out of handloom or powerloom industry. Further, the ld. Counsel cited the Circular No. 55(2)/73-AC dated 1975 of the Textile Committee which lists out the textiles that are liable to....

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....perfluous or redundant. The real object of proviso to be ascertained and it should be read along with the Section as a whole. (6)     Sales Tax Commissioner, UP v. Ladha Singh Mal Singh - Judgment of the Supreme Court in CA No. 564 1967. In this case the Hon'ble Supreme Court confirmed the view of the High Court which interpreted the word "mill". It agreed with the judgment of the Madras High Court in Dhandapani Powerloom Factory, Erode, v. Commercial Tax Officer, Coimbatore. (7)     Collector of Central Excise, Vadodara v. Diren Chemical Industries - 2002 (139) E.L.T. 3 (S.C.). (8)     Mittal Engineering Works v. Collector of Central Excise, Meerut - 1996 (88) E.L.T. 622 ....

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....of the Textile Committee Act, 1963. "Textile means any fabric or cloth or yarn or garment or any other article made wholly or in part of (i) cotton, or (ii) wool, (iii) silk, or (iv) artificial silk or other fibre, and includes fibre". 6. On perusal of the definition we find that there is difference between powerloom and textile. A doubt has cropped in our mind to know the meaning of the word "process" vis-a-vis textile. The dictionary meaning of "process" given in the Concise Oxford English Dictionary is: (i) a series of action or steps towards achieving a particular end; (ii) relating to or denoting printing, using ink in three colours and (iii) (verb) perform a series of operation to change or preserve. 7. The meanings gi....