TaxTMI 
TaxTMI 
1979 (10) TMI 86
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to claim exemption Notification No. 50/61, dated March 1, 1961 issues by the Central Government. The petitioners manufacture glassware including the glass beads. The glass beads are solid glass beads spherical or almost spherical in shape ranging in diameter anything from 0.11 mm. to 1.5 mm. These beads are called 'Ballotini' after its Italian inventor or glass beads all over the country and oversees. The Tariff item in respect of glass and glassware is 23A in the Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the `Act') and reads as follows : "23A. GLASS AND GLASSWARE- * * * *....
X X X X Extracts X X X X
X X X X Extracts X X X X
....exemption Notification. In pursuance of this order, the petitioners sought refund on March 29, 1971 and the refund cheque was handed over on July 15, 1971. 4. Thereafter a fresh show cause notice was served upon the petitioners on December 23, 1972. By this show cause notice, the petitioners were required to show cause as to why the classification and rates of duties approved by the jurisdictional Superintendent should not be revoked and as to why the glass beads should not be classified as chargeable under Tariff Item No. 23A(4). The annexure to the show cause notice sets out that the glass beads were examined by the Assistant Collector on December 13, 1972 and it was found that the glass beads are round spherical glass granules not hav....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s" in the Notification must be read in connection with the expression "glass bangles". The petitioners carried an appeal but that was dismissed by the Appellate Collector holding that the Brussels Nomenclature which was adopted by the Government of India in the year 1975 describes "glass beads" as white or coloured small pierced balls more or less round in shape and used for necklace, rosaries, imitation flowers etc. as well as for decorating textile articles and bags or for use as electrical insulators. Placing strong reliance upon this description, the Appellate Collector dismissed the appeal. The orders passed by the Excise Authorities are under challenge in this petition. 6. Mr. Dalal, the learned Counsel appearing in support of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....appearing in the exemption Notification and it must be held that the exemption was meant only for such products as are generally manufactured for personal ware. The submission of the learned Counsel is not correct. The exemption Notification, nowhere, restricts the exemption to glass beads used for ornamental or personal ware. It is not proper to read the exemption Notification in a limited sense and deprive the petitioners of the advantage of the same. 8. Mr. Manjrekar relied on the decision of the Supreme Court in the case of Dr. Devendra M. Surti v. The State of Gujarat reported in A.I.R. 1969 Supreme Court 63 where the Supreme Court was considering the question whether the expression "Commercial Establishment" appearing in Section 2(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cise Authorities to limit the expression "glass beads" to only those beads which are manufactured for personal or ornamental ware is entirely incorrect. 9. Mr. Dalal also submitted that while considering the exemption Notification, it is necessary for the Court to adopt the liberal construction and in support of this submission, the learned Counsel relied upon the decision of this Court in the case of Commissioner of Income-Tax, Bombay City I v. Chugandas & Co. (Securities) reported in 38, Income Tax Reports, 241. The question which came for consideration before the Court was whether the exemption from payment of income-tax was available in respect of income from securities. The matter was referred to a third Judge on a difference of opi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horities below. The submission is mis-conceived. In the first instance Brussels Nomenclature was not available to the department on the date when the show cause notice was issued on December 23, 1972. In the second instance the petitioners have laid large material in the shape of recognised books and dictionary to indicate the true ambit and scope of the expression "glass beads" and that undoubtedly support the petitioners. Apart from it when the expression in the Notification is very clear and is not restricted or limited to manufacture of glass beads for ornamental or personal use, in my judgment, it is not really necessary to fall back upon the Brussels Nomenclature to determine the true scope of the Notification. 12. Mr. Manjrekar fi....