TaxTMI 
TaxTMI 
1977 (6) TMI 104
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....44, the Government of India exempted handicrafts with effect from 30-4-1975 under Notification No. 114/75 from payment of Central Excise Duty levied under item No. 68 of the First Schedule to the Act. 2. The petitioner is a manufacturer of `Agarbathis' at Secunderebad. They are handmade. No power or machinery is used in their manufacture. On the ground that `Agarbathis' is a handicraft he claimed exemption from payment of duty. The Assistant Collector, Central Excise, Hyderabad informed him on 1-10-1975 that 'Agarbathis' are included in the list of items coming under 'handicrafts'as approved by the All India Handicraft Board and, therefore, they are attracted by the exemption granted by the Central Government with effect from 30-4-1....
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....fore, they are exempt from payment of Excise Duty. On the other hand it is submitted by the learned Counsel for the Central Government that chemical process is involved in the manufacture of 'Agarbathis' and, therefore, they are not handicrafts. 6. The question for my consideration is whether handmade 'Agarbathis' constitute handicrafts. If they are, they are exempt from payment of duty. lf they are not, they are not exempt. The word `handicraft' is not defined either in the Act or the rules. In Dunlop India Ltd. v. Union of India (AIR 1977 SC 597) the Supreme Court observed in para 31. - "lt is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the trade and it....
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....bour exercised by way of trade or for purposes of gain in or incidental to the making of any article or part of an article, or in or incidental to the altering, repairing, ornamenting, finishing, or otherwise adapting for sale, any article. Making straw plait, by a.child under the age of 8 years and who is being taught such plaiting, was a `handicraft' within this definition." 11. In Legal and Commercial Dictionary by S.D. Mitra, the same meaning is given. In Law Lexicon of British India by Shri P. Ramanatha Aiyer, 'handicraft' is defined as 'Manual skill manual art or trade'. Going by these defintions, there can be no doubt that the 'Agarbathis' manufactured by hand by the Petitioner are handicrafts. 12. Now I will turn to ....
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.... All India Handicrafts Board and the Handicrafts Development Corporation Limited of Karnataka State, have treated 'Agarbathis' as handicraft. It is not disputed that these organisations are formed to manufacture, market and export handicrafts. They promote co-operatives for making handicrafts. Therefore their opinion isentitled to great weight. They have treated `Agarbathis' as a handicraft. In fact, the Assistant Collector of Central Excise, Hyderabad in his letter dated 1-10-1975 to the petitioner has also treated 'Agarbathis' as a handicraft. Thus going by the popular meaning and the commercial meaning, I have no hesitation in holding that 'Agarbathis' made by hand are handicrafts. 15. But the learned Counsel for the Central Gove....