9911796707
TMI Blog1983 (10) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ch reads : Organic surface active agents (other than soap), surface active preparations and washing preparations, whether or not containing soap. This exemption has a condition which goes like this : If in or in relation to the manufacture and packing of such surface active agents, surface active preparations and washing preparations, no process is ordinarily carried on with the aid of power or of steam for heating. 2. The manufacturers manufacture their detergents without power except in the pumping of raw materials in which they use power driven pumps. The Appellate Collector held that the exemption is related to non-use of power not only in the manufacturing process but in relation to the manufacture which has a wider con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has the words no process is ordinarily carried on without the aid of power or of steam for heating . It is a moot point whether the heating will have to be done by either the power or the steam to disqualify the claimants. According to him the learned Counsel felt that heating will relate to steam and not to power. In that case since the power has been used to pump the raw material, the condition has been violated and the appellants do not get the exemption. In his view this violation has occurred as heating does not relate to power and power has been used in the manufacture or in relation to the manufacture of the product. 6. In its appeal dated 18-11-1980, the appellants contend that what is restricted is the use of power in the manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause the genitive possessive of occurs before both power and steam . If heating was to relate both to power and steam , the construction would be with the aid of power or steam for heating . In the construction given in the notification, the use of steam is restricted only to heating while the use of power is not restricted to any particular purpose, because if steam is used to drive a generator or a turbine that would be use of power and when not generating power, steam can hardly be used for any other purpose except heating. Therefore, it is more reasonable to argue that the use of steam for heating is to be taken as one of the alternatives, excluding power for heating . In other words, power is to be understood as standing b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal. EDITOR S COMMENTS The question regarding the use of power in handling the raw material prior to its use in the manufacture, was considered by Divisional Benches of Gujarat High Court in the case of Nirma Chemical Works v. Union of India - 1981 E.L.T. 617 and Bombay High Court in the case of Narendra Engineering Works v. U.O.I. - 1981 E.L.T. 859, wherein it was held that use of power in pumping the raw material from motor tank to the storage tank cannot be said to be use of power in the manufacture of finished article manufacture out of such raw material. This decision of the Appellate Tribunal on this question appears to be in direct conflict with the authoritative decisions of the Gujarat and Bombay High Courts. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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