TaxTMI 
TaxTMI 
1962 (9) TMI 1
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....cribes for the payment of duty on rayon or artificial silk fabrics including all varieties of fabrics manufactured either wholly or partly from the product commercially known as rayon or artificial silk; it, however, grants exemption from the said duty in respect of articles covered by clauses (i) to (v) thereof. Clause (v) deals with cases of rayon or artificial silk fabrics produced or manufactured in one or more factories by or on behalf of the same person in which less than 25 powerlooms in all are installed. The respondents in the three appeals claimed that the artificial silk fabrics which they produced or manufactured were produced or manufactured in factories owned by them in which less than 25 powerlooms are installed. This plea ha....
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....e. That is how the only question which arises in all the three appeals is whether the respondents' claim for exemption from payment of duty under Item 12A(v) is justified or not. The answer to this question depends on a fair and reasonable construction of the relevant clause. 2. It is common ground before us that the facts in the three appeals are substantially similar and the decision in C.A. No. 394/1962 will govern the decision of the two other appeals. We would, therefore, confine ourselves to the facts in relation to this appeal. The respondent Shah carries on business in the manufacture of art silk fabrics. He is the owner of nine powerlooms on which art silk fabrics are manufactured in the premises of Artex Silk Mills at Surat. He....
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....es by or on behalf of the same person in which less than 25 powerlooms in all are installed. Can it be said that the powerlooms which work in the two partnership in which the respondent is a partner are worked by or on behalf of the same person, viz., the respondent. It is quite true that under the law of partnership each partner is an agent of the other partners, but when clause refers to the same person, does it take in cases like the present where a person is working a factory of his own and has joined other partners in working other factories belonging to the said partnership? Under Section 3(42) of the General Clauses Act, 1897 (No. 10 of 1897), a person shall include any company or association or body of individuals, whether incorpora....
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....have purported to do. In the partnership M/s. Arun Textiles with which the said appeal is concerned, there were two partners who were also partners in M/s. M. Kantilal & Co. and notices have been served on both the partnerships in respect of the artificial silk fabrics manufactured in factories belonging to the partnership. The view taken by the taxing authorities was that both the art silk factories, namely, Arun Textiles and M. Kantilal & Co. of Surat which had common partners and had an aggregate potential loomage of more than 24 powerlooms and were producing rayon or art silk fabrics in both these factories, are treated as a collective entity for the Central Excise purposes for the period in question. 5. Apart from this consideration....