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TMI Blog1962 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... of the exemption clause, then it must be held that the legislature has failed to use appropriate words to carry out that intention. We were told that for subsequent years, the relevant item in the Schedule has been suitably modified and the present question is, therefore, not likely to arise in future. Appeal dismissed. - 394, 395 and 396 of 1962 - - - Dated:- 2-9-1962 - Gajendragadkar, C.J. [Judgment per : Gajendragadkar, C.J.]. - The short question of law which arises in these three appeals is whether the respondents in the three respective appeals who carry on business in the manufacture of art silk fabrics, are entitled to claim exemption from the excise duty under Item 12A(v) which was inserted in First Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the respondent was liable to pay the duty in question should be quashed. The High Court has also quashed the notice of demand issued against the respondent on the 30th October, 1957. The amount sought to be recovered from the respondent is Rs. 10,954/80 nP. The two other writ petitions filed by the respondents in civil appeal Nos. 395 and 396/1962 were dealt with in accordance with the view taken by the High Court in the writ petition filed by J.C. Shah. In the result, the three writ petitions filed respectively by the three respondents were allowed and notices of demand served on them were quashed. It is against these three orders that the Assistant Collector of Central Excise and Customs at Surat and the Inspector, Central Excise Secto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, the appellants' contention is that in considering the question as to whether in the factories where artificial silk fabrics are produced by or on behalf of the respondent, it will be necessary to add up the powerlooms in all the three factories. According to the appellants, the fact that the respondent owns only one factory in which nine powerlooms are working would not be decisive, because since he is a partner in two other firms which own 24 and 19 powerlooms respectively, these powerlooms must be added to the powerlooms that are working in the factory owned by the respondent alone, and that inevitably takes his case outside the exemption prescribed by Item 12A(v). 3. The question which these contentions raise is one of constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly inconsistent with the content of the said item and the object intended to be served by it in granting exemption to cases covered by it. 4. It has been urged by Mr. Prem on behalf of the appellants that the duty is levied not against the individual who produces the artificial silk fabrics, but against the artificial silk fabrics themselves, and since it is the production of the fabrics which in the subject-matter of the duty, the expression "same person" should be liberally construed to include cases like the present. This argument appears to us to be misconceived. If a partnership consists of 10 persons on Mr. Prem's argument the articles produced by the factory belonging to such a partnership may become the subject-matter of duty in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the other two factories is by or on behalf of two separate partnership of which the respondent happens to be one partner. We, therefore, feel no difficulty in holding that for the purpose of Item 12A(v) the three persons cannot be said to be the same person as claimed by the appellants. If it was the intention of the legislature to exclude cases like the present from the purview of the exemption clause, then it must be held that the legislature has failed to use appropriate words to carry out that intention. We were told that for subsequent years, the relevant item in the Schedule has been suitably modified and the present question is, therefore, not likely to arise in future. 6. The result is, the appeals fail and are dismissed with co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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