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TMI Blog1992 (7) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... the Khadi and Other Handloom Industries Development (Additional Excise Duty on Cloth), Act 12 of 1953 in the absence of specific provision for filing of the appeal under the said Act. Shri LakshmiKumaran, learned Advocate for the appellants, submitted that this issue was already dealt with by the Bench at the time of hearing the stay petition holding that the provisions in the Central Excises and Salt Act with reference to appeals would hold good with reference to adjudication under Act 12 of 1953 also since under Section 3(2) of the Act 12 of 1953 there is a reference made to the provisions of the Central Excises Salt Act with reference to levy and collection which would include provision for appeals also in respect of cess payable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f their contention. The contentions of the appellants were negatived by the authorities below holding that when the grey fabrics produced on the powerlooms are processed by an independent Processor will not be eligible for exemption from Handloom cess with reference to the Notification S.O. No. 115(E) dated 1-3-1975. 4. Shri Lakshmikumaran submitted that demand relates to the period 15-7-1979 to 30-11-1984. The appellants are entitled to claim exemption from Handloom cess in respect of grey powerloom fabrics for the material period in view of the intention of the Khadi and Other Handloom Industries etc. Act, 1953 as can be seen from the statement of Objects and Reasons of the said Act and particularly with reference to the exemption Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aneous exposition because of the fact that Notification was issued by the Ministry of Commerce whereas clarification was issued by the Ministry of Finance that too after one month from the date of notification. Further it is not clear whether clarification relates to the same notification as the relevant notification number was not referred to in the said clarification. She said that notification No. 1087 dated 18-6-1963 refers to mainly exempting the goods processed cotton cloth which is manufactured on a handloom and to claim the eligibility of exemption in respect of processed goods on powerloom the person claiming the exemption should own the powerlooms and independent processor without owning powerlooms will not be eligible for exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owning of powerlooms is not a condition to claim the exemption on processed cloth if it had been manufactured on powerloom and if that is so it leads to impossibility and purpose of the said notification will be defeated. 7. On a careful consideration of the submissions made by both sides with reference to the facts of the case, we find that Notification No. G.S.R. 1087 dated 18-6-1963 is relevant to decide the issue involved in this case and the same is reproduced as under: In exercise of the powers conferred by clause (e) of sub-section (2) of section 5 of the Khadi and Other Handloom Industries Development (Additional Excise Duty on Cloth) Act, 1953 (12 of 1953), the Central Government hereby makes the following rules: Processed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Additional Duties of Excise (Goods of Special Importance) Act, 1957, a copy of which has already been forwarded to you; and (ii) Notification No. 4(21) - Tex (C)/61, dated the 18th June, 1963, issued by the Ministry of Commerce and Industry under the Khadi and Other Handloom Industries Development (Additional Duty on Cloth) Act, 1953. 2. The effect of the above-cited Notifications is to provide legal backing to the executive instructions contained in para 8(ii) of the Note enclosed with this Ministry s letter F. No. 22/4/62-CXVII, dated the 24th May, 1962*, read with para 3 (viii) of the Note enclosed with the letter bearing the same number dated the 15th June, 1962, in accordance with which cotton fabrics produced on handloo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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