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TMI Blog1979 (10) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioners is entitled to claim exemption Notification No. 50/61, dated March 1, 1961 issues by the Central Government. The petitioners manufacture glassware including the glass beads. The glass beads are solid glass beads spherical or almost spherical in shape ranging in diameter anything from 0.11 mm. to 1.5 mm. These beads are called 'Ballotini' after its Italian inventor or glass beads all over the country and oversees. The Tariff item in respect of glass and glassware is 23A in the Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the `Act') and reads as follows : "23A. GLASS AND GLASSWARE- * * * * (1) * * * * (2) * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification and rates of duties approved by the jurisdictional Superintendent should not be revoked and as to why the glass beads should not be classified as chargeable under Tariff Item No. 23A(4). The annexure to the show cause notice sets out that the glass beads were examined by the Assistant Collector on December 13, 1972 and it was found that the glass beads are round spherical glass granules not having any hole or perforation through them. It was further stated that the end use of the glass beads was as reflectors, blast cleaning medium, grinding and dispersing medium and Collant for transformer oil and similar other industrial uses. It was further stated that the glass beads are not entitled to exemption as the conventional meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore or less round in shape and used for necklace, rosaries, imitation flowers etc. as well as for decorating textile articles and bags or for use as electrical insulators. Placing strong reliance upon this description, the Appellate Collector dismissed the appeal. The orders passed by the Excise Authorities are under challenge in this petition. 6. Mr. Dalal, the learned Counsel appearing in support of the petition submitted that the plain reading of the exemption Notification leaves no manner of doubt that the glass beads manufactured by the petitioners are entitled to exemption from payment of excise duty. Mr. Dalal submits that the petitioners have produced ample material before the Assistant Collector to establish that the glass beads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper to read the exemption Notification in a limited sense and deprive the petitioners of the advantage of the same. 8. Mr. Manjrekar relied on the decision of the Supreme Court in the case of Dr. Devendra M. Surti v. The State of Gujarat reported in A.I.R. 1969 Supreme Court 63 where the Supreme Court was considering the question whether the expression "Commercial Establishment" appearing in Section 2(4) of the Bombay Shops and Establishments Act would cover private dispensary of a medical practitioner. The Supreme Court in paragraph 6 of the judgment observed as follows :- But, in our opinion, in the matter of constructing the language of Section 2(4) of the Act we must adopt the principle of noscitur a sociis. This rule means that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Counsel relied upon the decision of this Court in the case of Commissioner of Income-Tax, Bombay City I v. Chugandas Co. (Securities) reported in 38, Income Tax Reports, 241. The question which came for consideration before the Court was whether the exemption from payment of income-tax was available in respect of income from securities. The matter was referred to a third Judge on a difference of opinion between the two learned Judges, but all the three Judges have held that while interpreting the exemption clause, the exemption should be liberally construed provided no violence is done to the language employed in the section. This decision of the Bombay High Court was confirmed by the Supreme Court in the case of The Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the expression "glass beads" and that undoubtedly support the petitioners. Apart from it when the expression in the Notification is very clear and is not restricted or limited to manufacture of glass beads for ornamental or personal use, in my judgment, it is not really necessary to fall back upon the Brussels Nomenclature to determine the true scope of the Notification. 12. Mr. Manjrekar finally submitted that the view taken by the authorities below was a possible view and therefore, I should not disturb it in these writ proceeding. Mr. Dalal rightly submits that on a previous occasion, the department has taken a contrary view and when there is a doubt in the mind of the department itself, it is futile to submit that this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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