9911796707
TMI Blog1997 (7) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... of rule 8 of the Central Excise Rules, 1944, read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and in supersession of the notifications of the Govt. of India in the Ministry of Finance (Department of Revenue and Insurance) Nos. 80/76-Central Excises and 122/76-C.E., dated the 16th March, 1976, the Central Govt. hereby exempts cotton fabrics, falling under sub-item I of Item No. 19 of the First Schedule to the Central Excises and Salt Act (1 of 1944) when subjected to any process or processes specified in the Table hereto annexed, from the whole of the duty of excise leviable thereon both under the Central Excises and Salt Act, 1944 (1 of 1944), and the Additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diction to construe the two exemption notifications and conclude that the two units are one and the same. The learned counsel submitted that the two exemption notifications granted exemption from payment of duty in respect of processes carried out with the aid of power or steam in one case and in other case processes without the aid of power. It was contended that there is nothing wrong for one person to set up two units, one where the process is carried out without the aid of power and the other with the aid of power and it is not permissible for the Collector to conclude that the two units are really composite one and can be termed as `factory' within the definition of the Act. We are unable to accede to the submission of the learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same factory. The modus is, therefore, found out by nominally setting up two separate units one for the purpose of bleaching and mercerising while the other for calendering and stentering. The process of bleaching and mercerising does not bring into existence a new article which is of a marketable value, but the wet fabric which has undergone bleaching and mercerising is required to be further processed by calendering and stentering, to make it a final product. It is, therefore, obvious that to secure advantage of both the exemption notifications a method is found out to split up the factory into two units, one run by the private limited company while the other by the partnership firm, but both under the control and care of the same grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged on some occasions. In an under-developed country like ours, the emphasis is bound to be more on capital goods industry rather than on consumer goods' industry. The domestic industry has also to be protected and encouraged in certain situations. The Board is a part of the Government. Probably, it is for this reason that the parliament has, through Chapter Note (2), vested the power to define the expressions occurring in Chapter 98 in the Board. In this Scheme of things, we cannot accept the argument of Shri Salve with respect to some kind of an inherent limitation upon the regulation making power of the Board. We cannot say that the said power is confined only to, what the learned counsel calls, peripheral and/or procedural matters." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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