Collector of Central Excise Vs. Digvijay Textile Mills

Collector of Central Excise vs Digvijay Textile Mills

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Dec 15, 1998

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Citation: sooperkanoon.com/14845
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On: Dec 15, 1998
Subject: MRTP

Case Summary

AI-generated summary - not the official court judgment text.

MRTP

Key legal issue: MRTP

Parties & Advocates

Appellant / Petitioner

Collector of Central Excise

Respondent

Digvijay Textile Mills

Legal References

Reported In: (1999)(106)ELT420TriDel

Excerpt

1. the revenue is aggrieved by the order of the collector of central excise (appeals), bombay extending the benefit of notification 70/88 to fabrics manufactured by the respondents herein and sold at prices higher than the maximum ex-factory price fixed by the textile commissioner in terms of the notification. it is the case of the revenue that, since the explanation to the notification stipulates specification by the textile commissioner of maximum ex-factory price, and since the respondents have sold the fabrics at a price higher than that specified under the notification, the fabric in question cannot be considered as "controlled cloth" covered by the notification.2. we have heard shri a.k. agarwal, learned sdr and perused the records since none appears for the respondents inspite of notice. "for the purpose of this notification "controlled cloth" means cloth which answers to the description of "controlled dhoty", "controlled saree", "controlled long cloth" and controlled polyester cotton blended shirting as defined from time to time by the textile commissioner under the textile (control) order, 1986, for which maximum ex-factory prices have been specified by the textile commissioner under the said order." 4. exemption from duty is available under the notification only in respect of such fabrics which are defined as "controlled cloth" by'the textile commissioner in terms of the textile (control) order, 1986. as per the textile (control) order, controlled cloth means "any variety or class or specification of cloth for which the maximum price or the price lists on which or the manner in which the maximum price is to be determined by a manufacturer, is specified by the textile commissioner under clause 16 of the order." clause 16(l)(e) lays down that the textile commissioner may from time to time issue directions in writing to any manufacturer or class of manufacturers or manufacturers generally, regarding the maximum price, ex-factory, wholesale or retail, at.....

Full Judgment

1. The Revenue is aggrieved by the order of the Collector of Central Excise (Appeals), Bombay extending the benefit of Notification 70/88 to fabrics manufactured by the respondents herein and sold at prices higher than the maximum ex-factory price fixed by the Textile Commissioner in terms of the Notification. It is the case of the Revenue that, since the explanation to the Notification stipulates specification by the Textile Commissioner of maximum ex-factory price, and since the respondents have sold the fabrics at a price higher than that specified under the Notification, the fabric in question cannot be considered as "controlled cloth" covered by the Notification.

2. We have heard Shri A.K. Agarwal, learned SDR and perused the records since none appears for the respondents inspite of notice.

"For the purpose of this Notification "controlled cloth" means cloth which answers to the description of "controlled dhoty", "controlled saree", "controlled long cloth" and controlled polyester cotton blended shirting as defined from time to time by the Textile Commissioner under the Textile (Control) Order, 1986, for which maximum ex-factory prices have been specified by the Textile Commissioner under the said order." 4. Exemption from duty is available under the Notification only in respect of such fabrics which are defined as "controlled cloth" by'the Textile Commissioner in terms of the Textile (Control) Order, 1986. As per the Textile (Control) Order, controlled cloth means "any variety or class or specification of cloth for which the maximum price or the price lists on which or the manner in which the maximum price is to be determined by a manufacturer, is specified by the Textile Commissioner under Clause 16 of the order." Clause 16(l)(e) lays down that the Textile Commissioner may from time to time issue directions in writing to any manufacturer or class of manufacturers or manufacturers generally, regarding the maximum price, ex-factory, wholesale or retail, at which any class or specification of cloth or yarn maybe sold. Vide Order dated 26-6-1986, the Textile Commissioner fixed the maximum ex-Mill price and retail price in respect of controlled cloth as Rs. 8.25 per metre. (The assessees sold the fabric at Rs. 8.75/- per metre). Therefore, the cloth sold at a price higher than the price stipulated by the Textile Commissioner's Order read with Textile (Control) Order does not qualify as controlled cloth. Further, in exercise of the powers conferred by Clause 16,17,18 of the Textile (Control) Order 1986, the office of the Textile Commissioner issued the 'Controlled Cloth (Production and Distribution) Notification, 1987' on 29-4-1987 which provides that the controlled cloth must be sold by the Mills at the maximum ex-factory price determined by the Textile Commissioner.

5. In the light of the above, we agree with the learned DR that the fabric on which duty demand has been raised and confirmed by the Assistant Collector is not eligible to the benefit of exemption in terms of Notification 70/88 and accordingly, we set aside the impugned order and allow the appeal.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Collector of Central Excise vs Digvijay Textile Mills Same Subject MRTP