Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1997)(93)ELT718TriDel
..... the issue involved in this appeal is whether chindies of cotton fabrics and trade samples falling under erstwhile tariff item 19-1 of the central excise tariff upto 28-2-1986 and under chapter 52 of the schedule to the central excise tariff act, 1985, are liable to handloom cess leviable under provisions of section 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953. ..... on appeal filed by the assessees, the collector (appeals) accepted the contention of the party holding that no handloom cess is leviable on chindies of cotton fabrics and trade samples. ..... following the precedent, we accept the contention of the party, and accordingly, the appeal filed by the department is hereby dismissed. ..... e/290/89-d in the case of collector of central excise v. ..... the assistant collector has rejected the plea of the appellants for exemption on the ground that there is no notification granting exemption to chindies of cotton fabrics and trade samples. .....
Tag this Judgment!Court : Delhi
Reported in : 1997IIIAD(Delhi)1025; AIR1997Delhi383; 67(1997)DLT458
..... for the purpose of the act, the expressions 'handloom industries', 'powerloom' and 'powerloom industries' have been defined in clauses (ca), (da) and (bd) of section 2 respectively as follows: '(ca)' handloom industries' has the meaning assigned to it in the khadi and other handloom industries development (additional excise duty on cloth act, 1953; (da) 'powerloom' means a loom which is worked by power as defined in clause (g) of section 2 of factories act, 1948 and which is used or capable of being used only for weaving cloth wholly or partly out of cotton yearn or woollen yarn, or fibre, or any kind of mixed yarn; (db) 'powerloom industry' means an industry in which a manufacture of textiles has, at any time during the ..... on textiles manufactured from out of handloom and powerloom industry but in the impugned notice no such exemption has been given and the levy as such as illegal; (ii)a basic duty is levied on silk imported material order the customs act, 1962 at the stage of import itself, and thereforee, no further cess can be levied under the act in respect of the goods manufactured out of the same imported silk as it would amount to double taxation; and (iii)as per section 5a(3) of the act, the duty of excise levied under sub-section .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1997)(93)ELT414TriDel
..... agarwal, learned sdr submitted that the respondents herein in any case manufacture cloth and since under section 3 of the khadi and other handloom industries development (additional excise duties on cloth) act, 1953, cess is leviable on cloth. ..... the point for consideration, therefore, is whether in terms of khadi and other handloom industries development (additional excise duties on cloth) act, the dyer of the fabrics is a manufacturer or not. ..... this point becomes important in view of the fact that the term used for levy and collection of cess duty is on cloth and not on fabrics as used by the central excise act. ..... we find that section 3 of the act ibid provides that there shall be levied and collected cess duty on cloth manufactured on or after the appointed day. ..... in the absence of any provision that dyeing of cloth shall be termed as manufacture for the purpose of levy of cess, we hold that duty on cloth (grey fabrics) has already been paid and no new product was coming into existence after dyeing inasmuch as cloth remains the same whether it was grey or dyed, we hold that cess cannot be levied and collected on dyed cloth if it has already been paid once on cloth. ..... kumar, proprietor, appearing for the respondents herein submits that they are getting cess paid cloth and were dyeing the same cloth.since duty of cess was leviable on cloth only and since they were not manufacturing any new product out of the cloth, therefore, cess duty cannot be demanded from them. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1995)(78)ELT692TriDel
..... - all varieties of cloth which are for the time being exempted from the duty of excise levied thereon under the central excises & salt act 1944 (1 of 1944) shall be exempt from the excise duty leviable thereon under the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (12 of 1953): provided further nothing contained in this rule shall apply to processed man-made fabrics which are exempted from the duty of excise leviable thereon under the central excises and salt act, 1944 (1 of 1944)".5. ..... it has been argued that the definition of 'cloth' in section 2 of khadi and other handloom industries development (addl.excise duty on cloth) act, 1953 as it stood at the relevant time covered, inter alia, silk and rayon or artificial silk fabrics and did not cover the goods as in the present case, namely, man-made fabrics, and it being a piece of legislation by incorporation, it is contended that man-made fabrics will not be liable at all to pay the cess.however, in our view, this is a case of referential legislation rather than legislation by incorporation. ..... counsel for the appellants, drew attention to the definition of cloth under section 2(b) of the khadi & other handloom industries development act, 1953 which says that cloth means cotton, woollen, silk and rayon or artificial silk fabrics as defined in the first schedule to the central excises & salt act, 1944. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1994)(54)LC319Tri(Delhi)
..... in accordance with the provisions government under clause (e) of section 5(2) of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (act no. ..... however, according to the department handloom cess was payable when these fabrics got impregnated, coated or laminated with preparations of cellulosic derivatives as per the provisions of khadi and other handloom industries development (additional excise duty on cloth) act, 1953. ..... 1.3.1975 issued under khadi & other handloom cess industries development (additional excise duty on cloth) act, 1953 lays down that -"all varieties of cloth which are for the time being exempted from duty of excise levied thereon under the central excises & salt act, 1944 shall be exempted from the excise duty leviable thereon under the khadi & other handloom industries development (additional excise duty on cloth) act, 1953. ..... 1.3.1975 issued under khadi & other handloom cess industries development (additional excise duty on cloth) act, 1953 specifically provides that process man-made fabrics even though exempted from the basic duty would be leviable to duty of handloom cess. ..... 12 of 1953), the central government exempted from the additional excise duty leviable under the said act (we shall refer to this duty as handloom cess) all varieties of cloth which were for the time being exempted from the excise duty leviable thereon under the central excises & salt act, 1944. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1988)(35)ELT551TriDel
..... shri sood for new fine dyeing however, submitted that since the definition of "cloth" in the khadi and other handloom industries development (additional excise duty on cloth) act 1953 did not cover processed cloth, cess could not be collected from the appellants on such processed cloth. ..... after receipt of reply and on adjudication the collector of central excise, new delhi in four cases and the additional collector, new delhi in one case under separate orders, held the charges established and confiscated the seized goods giving an option for redemption on payment of fine as indicated in the respective orders; demanded central excise duty and handloom cess as indicated in the several orders and also imposed penalties. ..... so far as the demand for payment of handloom cess is concerned, some arguments were advanced initially on the basis that as the levy was on "cloth" as defined in section 2(b) of act 12 of 1953 and there was no such word as "cloth" in the first schedule to the central excises and salt act during the relevant period the demand was not justified. ..... we are unable to accept this contention because the amended definition of the entries in the first schedule to the central excises and salt act (brought about in 1979 spelling out processed fabrics in addition to unprocessed fabrics) would apply also to the levy of handloom cess in view of the definition of "cloth" in the 1953 act. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Reported in : (1990)(46)ELT365TriDel
..... the provisions government under clause (e) of section 5(2) of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (act no. ..... 1953), the central government exempted from the additional excise duty leviable under the said act (we shall refer to this duty as handloom cess) all varieties of cloth which were for the time being exempted from the excise duty leviable thereon under the central excises and salt act ..... to cotton fabrics of the following descriptions, among others, manufactured in a composite unit: (a) medium a unprocessed; and (b) medium b, and coarse, if unprocessed; or if bleached, or dyed, or if bleached and dyed but not printed.however, the exemption in favour of all varieties of cotton fabrics, including coarse, medium a and medium b (with which we are concerned in the present dispute), intended for use in any textile printing, dyeing, bleaching or sizing process from the central excise duty leviable thereon continued to be in force in ..... the way of harmoniously reading the two notifications together would be to take the view that whereas the exemption from handloom cess to all cotton fabrics intended for use in textile printing (which are exempt from central excise duty leviable) available even after the insertion on 7-7-1970 of a proviso to notification no. ..... in any textile printing, dyeing, bleaching or sizing process, are exempted from the whole of the excise duty leviable thereon under the central excises and salt act, 1944. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Reported in : (1987)(27)ELT96Tri(Mum.)bai
..... in the appeal, the collector of central excise, baroda, has contended that in section 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953, there is no provision for refund of duty. ..... hence under section 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953, no duty is leviable. ..... in other words under these provisions the machinery provisions of the central excises and salt act, 1944 have been applied to the collection of the handloom cess which is described as additional duty on cloth. ..... under sub-section (2) of section 3 the duty of excise specified in sub-section (1) is in addition to the duty of excise chargeable on cloth under the central excises and salt act, 1944 and it is to be levied and collected in the same manner as the duty of excise on cloth levied and collected under the act. ..... therefore the refund of this duty popularly known as the handloom cess can be claimed as provided under section 11b of the central excises and salt act, 1944; provided the same is refundable. ..... v-2(19)2290/82, dated 16-5-83 passed by the collector of central excise (appeals), bombay, under which he allowed the first appeal of the respondents for the refund of handloom cess and interest on the amount of duty on cotton yarn consumed in the manufacture of cotton fabrics used in the manufacture of cotton napkins which were ultimately exported out of india. .....
Tag this Judgment!Court : Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai
Reported in : (1987)(10)LC78Tri(Mum.)bai
..... section 3(2) of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 thus makes it amply clear that the manner of levy and collection of this duty of excise has to be the same as the manner prescribed for the levy and collection of the basic duty of excise on cloth in schedule 1 to the central excises and salt act, 1944. ..... besides it is seen that under section 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (act no. ..... one was whether the handloom cess was a duty and therefore the appeals should be heard by the special bench and the other was whether handloom cess could be collected under the provisions of the central excises & salt act, 1944 and therefore the time limit under that act would apply to the refund of the duty claimed. ..... it has been laid down specifically by sub-section (2) that the duty of excise specified in sub-section (1) should be levied and collected in the same manner as the duty of excise on cloth levied under the central excises and salt act, 1944. ..... similarly the provisions of chapter vi-a of the central excises and salt act, 1944 are also made applicable by the aforesaid section 3(2) and it is only in this way that this tribunal has the jurisdiction to deal with the appeal relating to the refund of the handloom cess. ..... 12 of 1953), which is the charging section for the levy of the handloom cess, it is termed as a duty of excise. .....
Tag this Judgment!Court : Delhi
Reported in : 1988(15)ECC441; 1988(33)ELT41(Del)
..... in section 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (hereinafter referred to as the principal act), in sub-section (1), for the proviso, the following proviso shall be substituted, and shall be deemed to have been substituted with effect from the 10th day of january, 1957, namely :- provided that no such duty shall be levied on cloth - (i) which is exported out of india, or (ii) which is used in the manufacture of goods which are exported out of india.' '3. ..... the challenge in this writ petition is to the validity of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (hereinafter referred to as the '1953 act'). 2. ..... in the year 1953, the parliament enacted the khadi and other handloom industries development (additional excise duty on cloth) act, 1953. ..... the learned counsel for the petitioner submitted that a promise was held out to the petitioner in the form of notification of 1953 that if cloth was manufactured on which excise duty was not payable under the excise act, then additional excise duty under the 1953 act would also not be payable. ..... in exercise of the powers under section 5 of the 1953 act, the central government had issued a notification dated 25th july, 1953 whereby all varieties of cloth which were for the time being exempted from the duty of excise levied thereon under the excise act was also exempted from the additional excise duty under the 1953 act. 4. .....
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