TaxTMI 
TaxTMI 
2025 (12) TMI 1668
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....5901-2009, CWP-5940-2009, CWP-5956-2009, CWP-5970-2009 and CWP-5971-2009). For the Petitioner: Mr. Balwinder Singh, Advocate (in CWP-2550-2006 and CWP-3595-2006). For the Respondent No. 2: Mr. Arun Gosain, Sr. Government Counsel with Ms. Swati Arora, Advocate (in CWP-2550-2006, CWP-15944-2008, CWP-17670-2008, CWP-19876-2008, CWP-3742-2006, CWP-3753-2006, CWP-3656-2006, CWP-4121-2006, CWP-17558-2006 and CWP-3595-2006). For the Respondent-UOI: Mr. Sourabh Goel, Sr. Standing Counsel with Ms. Anju Bansal, Advocate Ms. Geetika Sharma, Advocate and Ms. Himanshi Gautam, Advocate (in CWP-5901-2009, CWP-5940-2009, CWP-5956-2009, CWP-5970-2009 and CWP-5971-2009). *** JAGMOHAN BANSAL, J. (ORAL) 1. As common issues are involved in the captioned petitions, with the consent of both sides, the same are hereby disposed of by this common order. For the sake of brevity and convenience, facts are borrowed from 2. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of order dated 24.11.2008 whereby Tribunal has dismissed its appeal. 3. The petitioner is a Private Limited Company and engaged in the business of dyei....
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....ioner acknowledges the fact that an alternative remedy is available to the petitioner. In view of the above, he seeks liberty to file an appeal against the impugned assessment orders. Learned counsel for the respondents has no objection to the course suggested by the learned counsel for the petitioner, in case such an appeal is filed within 6 weeks from today. In view of the above, the instant petition is dismissed as withdrawn with liberty to the petitioner to file an appeal against the impugned assessment orders within 6 weeks from today. Coercive methods for recovery of tax be not initiated against the petitioner for a period of six weeks from today. Sd/- J.S. Khehar, Judge. Sd/- Hemant Gupta, Judge." 25.11.2003 6. The petitioner preferred appeal before Textile Cess Appellate Tribunal, Mumbai (for short 'Tribunal') which came to be dismissed vide order dated 24.11.2008. 7. Learned Senior Counsel for the petitioner submits that petitioner was engaged in the business of processing of fabric and not manufacture of fabric, thus, Section 5A of 1963 Act was inapplicable. As per Rule 10 of the 1975 Rules, demand could be raised within one year ....
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....ion (1),- (a) the Committee shall, by notification in the Gazette of India, fix the period in respect of which assessments shall be made; and (b) every manufacturer shall furnish to the Committee a return, not later than fifteen days after the expiry of the period to which the return relates, specifying the total quantity of textiles or textile machinery manufactured by him during the said period and such other particulars as may be prescribed. (6) If any manufacturer fails to furnish the return referred to in sub-section (5) within the time specified therein, or furnishes a return which the Committee has reason to believe is incorrect or defective, the Committee may assess the amount of the duty of excise in such manner as may be prescribed. (7) Any manufacturer aggrieved by an assessment made under this section may appeal to the Tribunal, constituted under section 5B for cancellation or modification of the assessment." 11. The aforesaid section was inserted w.e.f. 01.01.1975. The respondent did not collect even single penny from independent textile units during 1975 to 2000. Said fact has been admitted by Chairman, Textile Committee in its c....
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....bulk pack to retail pack of garments amount to manufacture. 13. From the definition of 'manufacture' under Central Excise Act read with Chapter Notes of Central Excise Tariff Act, it is evident that definition of manufacture for levy of Central Excise duty is very wide. Every small process which is incidental or ancillary to manufacture of product amounts to manufacture. Under 1963 Act, there is no definition of 'manufacture', however, it has been provided that cess would be levied on manufacture of textiles. Expression 'textiles' has been defined under Section 2(g) which reads as:- "Textiles" means any fabric or cloth or yarn or garment or any other article made wholly or in part of - (i) cotton, or (ii) wool, or (iii) silk, or (iv) artificial silk or other fibre, and includes fibre." 14. From the perusal of above-quoted Section, it is evident that textile means fabric or cloth or yarn or garment or any other article made wholly or in part of cotton or wool or silk or artificial silk and includes fibre. The said definition does not provide that manufacture of yarn or cloth or garment includes intermediate stages or incidental processes carried out to manufacture yar....
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....e's Cess particularly for independent processing units in as much as many of them are either of medium scale or small units and some are in fact tiny, i.e. very small like cottage industry. The other reason is that when yarn is purchased the weavers pay the cess it is charged separately in invoices by the yarn manufacturers, the composite mills having spinning, weaving and processing, pay the levy of excise cess on yarn and grey cloth of processed cloth, as the case may be, and mills having weaving and processing pay Textile Cess on yarn when purchased and cess on grey of processed cloth as the case may be and Mills having only weaving pay the cess yarn when purchase. Like power and handlooms clothes are exempt from Textile Cess no cess be charged on independent processing units, as cess at yarn level is already paid. Technically, processors are not manufacturers, as they do not make clothes/ yarn/ textiles. With respect to the applicability of cess on independent processing units of Textiles Committee is concerned which has not made applicable for the last 25 years and further, it is humanly impossible to cover the scattered processing units in different part....