TaxTMI 
TaxTMI 
1983 (10) TMI 242
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....oods fall under Item 2 of this notification which reads : "Organic surface active agents (other than soap), surface active preparations and washing preparations, whether or not containing soap." This exemption has a condition which goes like this : "If in or in relation to the manufacture and packing of such surface active agents, surface active preparations and washing preparations, no process is ordinarily carried on with the aid of power or of steam for heating." 2. The manufacturers manufacture their detergents without power except in the pumping of raw materials in which they use power driven pumps. The Appellate Collector held that the exemption is related to non-use of power not only in the manufacturing process but in relat....
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....Counsel for the department argued that the condition has the words "no process is ordinarily carried on without the aid of power or of steam for heating". It is a moot point whether the heating will have to be done by either the power or the steam to disqualify the claimants. According to him the learned Counsel felt that heating will relate to steam and not to power. In that case since the power has been used to pump the raw material, the condition has been violated and the appellants do not get the exemption. In his view this violation has occurred as heating does not relate to power and power has been used in the manufacture or in relation to the manufacture of the product. 6. In its appeal dated 18-11-1980, the appellants contend ....
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....steam not merely because of the disjunctive "or" but because the genitive possessive "of" occurs before both "power" and "steam". If heating was to relate both to "power" and "steam", the construction would be "with the aid of power or steam for heating". In the construction given in the notification, the use of steam is restricted only to heating while the use of power is not restricted to any particular purpose, because if steam is used to drive a generator or a turbine that would be use of power and when not generating power, steam can hardly be used for any other purpose except heating. Therefore, it is more reasonable to argue that the use of "steam for heating" is to be taken as one of the alternatives, excluding "power for heating". ....