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2013 (8) TMI 449 - ALLAHABAD HIGH COURTLevy of Textile Cess - Textile Cess was demanded from the petitioner which had been further confirmed – Petitioner contended that the job work undertaken by them was not a process of manufacturing textile – Held that:- The petitioners were job workers and were doing bleaching, dyeing etc. on the textile so supplied to them, they will be treated as extended hand of hand-loom and power-loom textile manufacturers - The hand-loom and power-loom textile manufacturers instead of getting work of bleaching etc. done by themselves, have engaged the petitioner on job work basis - The petitioner received the textile and after doing the needful return the textile to such manufacturers - Section 5A imposes cess for the purposes of the Act, 1963, a duty of excise on all textiles and on all textile machinery manufactured in India -The word 'manufacture' is not defined in the Act, 1963 - The Textile Committee had been set up to carry on inspection to enable the exporters to claim replacement entitlements under the registered exporter policy as finds mention in the statement of objects to Amending Act No.51 of 1973 – order of Demand was quashed. The textile manufactured out from hand-loom and power-loom industry had been exempted under section 5A, obviously no inspection in respect of textile manufactured by such industry was required and therefore, it was reasonable to conclude that the activity undertaken by an extended hand of these manufacturers will also be not liable to pay the impost of cess under the Act. - Decided in favor of assessee.
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