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TMI Blog1991 (3) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... ents by the petitioners with interest at the rate of 18% per annum. As the facts are similar and the law involved is the same in these writ petitions, they are being disposed of by this common order. Their facts may be summarised thus. 2. The petitioner's case is as follows. They carry on business of minerals, particularly in soap-stone and have mines in Tehsil Girwa (Udaipur). They have roller-mills for grinding soap-stone lumps into powder. Due to the insistence of the respondents, they have obtained licences under the Central Excises and Salt Act (hereinafter to be called 'the Act') and are paying the central excise duty under protest. They get their licences renewed under protest. An appeal before the Assistant Collector, Central Excise and Customs, Division Udaipur (respondent No. 3) has been filed against the levy of central excise duty on the soap-stone powder. The Indian Soap-stone Producers' Association, Udaipur of which they are members, have submitted memorandums An- nexures 2 3 before the respondent No. 3 and also to the Ministry of Finance, Government of India, New Delhi stating that soap-stone is talc which has been exempted under Notification 23-C.E. dated April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and the respondent No. 4 has issued the letter Annexure 10. In the replies, a preliminary objection has been taken that the petitions are not maintainable as petitioners have not availed of alternate remedies available under the Act, letter Annexure 10 is not an adjudication order, petitioners could approach the Assistant Collector for passing an adjudication order and against his order appeal before the Collector (Appeals) and, thereafter, before the Central Excise and Gold Control Tribunal, could be filed. 4. At the commencement of the arguments, the learned counsel for the petitioners submitted that they do not press their case on the ground that the grinding of soap-stone lumps into soap-stone powder does not involve manufacturing process. They confined their contentions on the point that soap-stone is talc and is thus exempted under Notification No. 23-C.E., dated April 29, 1955. They contended that the formal decision of the Government of India conveyed through the letter Annexure 8 was taken on the various representations of the petitioners and their Association after long protracted negotiations, it has been reversed without hearing the petitioners or the Association, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration is whether talc includes soap-stone. 8. It has been observed in Dunlop India Ltd. v. Union of India, AIR 1977 S.C. 597 paras 31, 32, 33 and 34 as follows :- "It is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the Trade and its popular meaning should commend itself to the authority." 9. In Ramavatar Budhai Prasad v. Assistant Sales Tax Officer, (1962) 1 S.CR 279 = (AIR 1961 S.C 1325), it has been held as follows :- "But this word must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. It has not been defined in the Act and being a word of every day use it must be construed in its popular sense meaning 'that sense which people conversant with the subject matter with which the statute is dealing would attribute to it'. It is to be construed as under stood in common language." 10. In the Commissioner of Sales Tax, Madhya Pradesh, Indore v. M/s. Jaswant Singh Charan Singh, AIR 1967 S.C. 1454, it was observed as follows :- "Now, there can be no dispute that while coal is technically understood as a mineral product, charcoal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. As such it is to be seen whether talc and soap-stone are known and treated as different or same minerals by the people who use or deal with them. Item No. XV of Rule 69, Minor Mineral Concession Rules, 1960 runs as under :- " (XV) Talc (Soapstone Steatite) and Dolomite." Soapstone and Steatite have been shown in bracket after talc and before dolomite. If soap-stone would have been a different mineral from the talc, it would not have been put in the bracket and would have been shown separately like dolomite. 14. Letter No. DM 6/F4(kh)P D/14/84/457 dated April 22, 1985 of the Director, Mines and Geology, Rajasthan, Udaipur addressed to Indian Soapstone Producers Association, Udaipur (Part of Annexure 2 of first writ petition) runs as under :- "As per Rule 69(xv) of Mineral Concession Rules, 1960, Talc includes soapstone and Steatite and they are one and the same. Further as per royally Schedule-4, Steatite, talc and soapstone are one and the same. Therefore, it is certified that legally Steatite, talc and soapstone are one and the same." 15. Directory of Mineral Consumers in India published by India Bureau of Mines states at page 368 as under :- "Talc is a hydrated sil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essentially a secondary mineral formed by the hydrother mal actions and regional metamorphism or magnesium-rich rocks like dolomite, pyroxinate, amphibolice, serpentine, dunite and chlorite. It is distinguished by its soapy and smooth texture. It is the softest mineral known being 1 in the Moh's scale of hardness. It is whitish to greenish in colour, sometimes tined brown. In purverised form it is whiter in appearance. The compact variety of talc is called steatite. It is sometimes called 'lava' talc. Soapstone is a massive, soft, greenish talcose rock containing a mixture of talc and various other magnesium mineral. The word soapstone has been named probably due to its soapy feel. The impure and hard variety is called potstone, which is mainly utilised for making models, decorative vases, carvings,, utensils, pots and the like and hence the name potstone." 20. Elementary Economic Geology by H. Ries (1930 Edn.) deals with Talc and Soapstone together at page 183-185. Their properties are as follows :- "Talc, a hydrous magnesium silicate (H2Mg3 (Si03)4 is characterized by its extreme softness and soapy feel. It is white, grey or green in colour, and has a foliated or micaceous st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chemical Technology published by John Wiley Sons, New York dealing with talc to show that the physical and chemical properties and uses of talc and soapstone are different. Different physical and chemical properties and use of a commodity go to make it of different varieties. Here the question is not regarding the physical and chemical properties and use of talc and soapstone but whether both these minerals are known and treated as same or different commodities by the people who use or deal with them. In start of page 524, it is stated that talc, soapstone and pyrophylite are grouped together by the U.S. Bureau of Mines for reporting purpose. It is not the case of the respondents that this Encyclopedia has separately dealt with soapstone elsewhere. 26. In Oriental Talc Products v. Collector, Central Excise, Jaipur, 1984 (18) E.L.T. 657, relied upon by the learned counsel for the respondents, it has been observed that when this soapstone does not fall under item 14-F as per the own case of the appellants, it does not seem to reason as to how they are entitled to the benefits of these exemption notifications. There is no discussion that talc and soapstone are same or different mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without hearing the aggrieved parly." 30. It has been observed in Purtabpur Company Ltd. v. Cane Commissioner of Bihar and Others, AIR 1970 S.C. 1896 at page 1902 para 17, as follows :- "The power exercisable by the Cane Commissioner under Cl. 6(1) is a statutory power. He alone could have exercised that power. While exercising that power he cannot abdicate his responsibility in favour of anyone - not even in favour of the State Government or the Chief Minister. It was not proper for the Chief Minister to have interfered with the functions of the Cane Commissioner. In this case what has happened is that the power of the Cane Commissioner has been exercised by the Chief Minister, an authority not recognised by Cl. (6) read with Cl. (11) but the responsibility for making those orders was asked to be taken by the Cane Commissioner." 31. Consequently, the writ petitions are partly allowed and it is held and declared that soap-stone is included in the word 'talc', it is covered under Exemption Notification No. 23/55-C.E., dated April 29, 1955 and it is exempted from payment of excise duty, if it is employed either as extender, suspending agent, filler or diluent. 32. Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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