2007 (10) TMI 505

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..... r the Appellant has argued that the Appellants are engaged in processing of textile fabrics and these fabrics are produced through a powerloom. While arguing, our attention is drawn to the proviso to Section 5A (1) which reads as follows: Provided that no such cess be levied on textiles manufactured from out of handloom or powerloom industry . The ld. Counsel has stressed on the proviso wherein it is very specific that no cess can be levied on textiles manufactured from out of handloom or powerloom industry. Further, the ld. Counsel cited the Circular No. 55(2)/73-AC dated 1975 of the Textile Committee which lists out the textiles that are liable to levy and collection of cess. Appendix appended to the Circular clearly shows that cess is l .....

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..... t of the Supreme Court in CA No. 564 1967. In this case the Hon ble Supreme Court confirmed the view of the High Court which interpreted the word mill . It agreed with the judgment of the Madras High Court in Dhandapani Powerloom Factory, Erode, v. Commercial Tax Officer, Coimbatore. (7) Collector of Central Excise, Vadodara v. Diren Chemical Industries - 2002 (139) E.L.T. 3 (S.C.). (8) Mittal Engineering Works v. Collector of Central Excise, Meerut - 1996 (88) E.L.T. 622 (S.C.). 3. All these judgments (supra) have not exempted payment of the cess totally, but only when it is already paid, then subsequent payment is not to be made. 4. The Respondent, on the other hand, submitted that the Appellant is a processing unit and, .....

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..... ere is difference between powerloom and textile. A doubt has cropped in our mind to know the meaning of the word process vis-a-vis textile. The dictionary meaning of process given in the Concise Oxford English Dictionary is: (i) a series of action or steps towards achieving a particular end; (ii) relating to or denoting printing, using ink in three colours and (iii) (verb) perform a series of operation to change or preserve. 7. The meanings given for the word process denote that a series of action to be taken on an original one. Therefore, to our mind, processing unit like that the Appellant cannot be said to be a manufacturer from out of powerloom as by powerloom one can weave cloth, wholly or partly, out of cotton yarn or woollen .....

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