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TMI Blog1978 (12) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... s a processing centre at Erode and it receives cotton fabrics woven out of bleached/dyed yarn for purposes of processing. Such goods were entered by it in its records as "bleached and/or dyed, but not printed fabrics" in the Pt. I register at the time of entry into the factory. Excise duty on the fabrics processed at the centre was being paid at the rates specified in Sl. Nos. 10(a) and 10(b) of the second Table to the Notification No. 88/69, dated 1-3-1969. 3. By a notice dated 18-12-1971, the Superintendent of Central Excise, Erode, called upon the petitioner to show cause why fabrics processed in its factory should not be treated as grey fabrics and reassessed at the rates laid down in Sl. Nos. 5(a) and 5(b) of the second table to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty have been stipulated in Sl. Nos. 10(a) and 10(b) only to cover fabrics which have been processed, i.e., bleached and/or dyed. As such, fabrics made out of bleached and/or dyed yarn cannot be treated as processed fabrics in that the fabrics have not undergone any processing after they have been woven and therefore, such fabrics can be treated only as grey or unprocessed fabrics which attract higher impost of duty under Sl. Nos. 5(a) and 5(b). The respondents, therefore, take the stand that the petitioner is statutorily bound to pay the differential duty claimed from it. Another objection raised by the respondents is to the maintainability of the writ petition that the petitioner has an alternative remedy of revision and without exhausti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing has been successfully extended to various kinds of yarn and fabric. In the Encyclopaedia of Science and Technology Mc.Graw-Hill (Vol. 5) page 270, it is stated as follows: "With the invention and development of synthetic dye-stuffs, the process of dyeing cotton both in the yarn and fabric became a technological triumph of rapidity, uniform colouring and control". In the Standard Handbook of Textiles, by A.J. Hall, 8th Edn. at page 216, there is reference to dyeing of cotton yarn etc. and the advantages of it in the following words - "Quite considerable amounts of cotton, wool, silk and linen yarns are scoured preparatory to dyeing. These yarns are either sold later for home-knitting or are used by weavers and knitters who wish to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry or wet finishing operations. Grey goods are taken to the perch for chalk marking of all defects, no matter how small. These blemishes must be remedied in finishing of the cloth. Materials converted from the grey goods condition to the finished. Dry finishing operations may include perching, measuring, burling, specking, marding, sewing, experienced sewing, shearing, happing, gigging, pressing, packing, wrapping and so on." 10. From the above definition and extracts, it may be noticed that on account of the developments and progress of textile science and technology, cotton yarn can be subjected to the processes of bleaching and/or dyeing and then woven into fabrics and the process of bleaching and/or dyeing need not wait for the fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained by a sugar manufacturer in the process of carbonation cannot be levied excise duty, as what was obtained was not carbon dioxide as understood in the market South Bihar Sugar Mills Ltd. v. Union of India, 1978 E L.T (J 336) = AIR 1968 S.C. 922. In construing the words found in a taxing statute, their popular meaning and the manner of their acceptation by the trade should commend itself to the taxing authority. (Vide Dunlop India Ltd. v. Union of India, AIR 1977 S.C. 597; Zoraster and Co. v. Union of India AIR 1976 Raj. 190; Union of India v. C.W.F. Mills, AlR 1977 S.C. 1548 and State of Uttar Pradesh v. Indian Hume Pipe and Co. AIR 1977 S.C. 1132. The pronouncements in all these cases clearly lend support to the petitioner's contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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