TMI Blog2013 (8) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Writ Tax No. 354 of 2006 - - - Dated:- 6-3-2013 - Prakash Krishna And Ram Surat Ram (Maurya), JJ. For the Appellant : Ashok Kumar, Praveen Kumar For the Respondent : A S G., A Nigam, K C Sinha, S K Mishra JUDGEMENT:- Per : Prakash Krishna, J : The present writ petition arises out of proceeding under a little known statute namely Textile Committee (Cess) Act, 1963 and is directed against the order passed by the Textile Committee, Cess, Appellate Tribunal, Mumbai whereby the order passed by the Assessing Officer, Textile Committee, New Delhi demanding Textile Cess from the petitioner has been confirmed. The petitioner is engaged in the business of bleaching, dyeing and proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gination be included under section 5-A of the Act. Reliance has been placed upon a decision of this Court given by the learned Single Judge in Writ Petition No.637 of 2006: M/s. Pawan Exports Private Limited Vs. Union of India and others decided on 28th of April, 2010. The word 'manufacture' has not been defined under the Act. Since the cess is being realized as the excise duty, as such, the definition of the word 'manufacture' as given in the Central Excise Act, 1946 can be applied for the purposes of this Act. As under Central Excise Act, 1944, 'processing' is included in 'manufacturing', as such the provision is also covered under the Act. He relied upon the judgment of Supreme Court in Ujagar Prints etc. Vs. Union of India, AIR 1989 SC 516 . He further submitted that Supreme Court in Sirsilk Ltd. and others Vs. Textile Committee and others, AIR 1989 SC 317 has held that manufacture of textile of rayon and nylon yarn are liable to pay cess under the Act. He further submitted that Delhi High Court in M/s. Nath Brothers Exim. International Ltd. Vs. Union of India and Ors., AIR 1997 Delhi 383 has held that manufacturer of ready-made garments from the textiles purchased from han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l textiles whether made wholly or partly of cotton wool, silk, artificial fibre or silk. It is further considered that the work of inspection of indigenous textile machinery and stores should also be entrusted to the Committee. The functions of the Committee should generally be to ensure standard qualities of textile for internal marketing and export purpose and the manufacture and use of standard type of textile machinery. 4. The present Bill seeks to achieve the above objects and to replace the existing Cotton Textiles Fund Ordinance, 1944-- Gaz. of Indi. 22-11-1962, Pt. II, S.2, Ext. p. 1160. The Act was amended by the Amending Act No.51 of 1973. The aims and objects of the Amending Act is reproduced below:- Amending Act 51 of 1973, -- The Textiles Committee has been set up under the Textiles Committee Act, 1963 for securing standard qualities of textiles for internal as well as external marketing and manufacture and use of standard type of textile machinery. The Committee has so far concentrated its attention and efforts on ensuring standard qualities of textiles for export by undertaking preshipment inspection. Since December, 1966, export of cotton textiles has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he time of amendment of the Act in the year 1973, it was realized that expenses of the Committee realized from the fee were not meeted out; as such, cess was imposed on the manufacturer of textiles over textile machineries. Thus, the object of the Act was not to realize the revenue for the government. With effect from 1st of January, 1975, a new definition of Textiles was substituted which reads as follows:- By Act No. 51 of 1973, a new definition of `textiles' was substituted w.e .f. January 1, 1975 and it reads: "2(.g). 'textiles' means any fabric or cloth or yarn or garment or and other article made wholly or in part of (i) cotton; or (ii) wool;or (iii) silk;or (iv) artificial silk or other fibre. xx xx xx xx xx It must be stated here that Act No.51/73 introduced a new provision S. 5A as a result of which a cess has been imposed in place of a fee. Sub-s. (1) provides that there shall be levied and collected as a cess for the purposes of this Act a duty of excise on all textiles and on all textile machinery manufactured in India at such rate, not exceeding 1% ad valorem as the Central Government may, by notification in the Official Gazette, fix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents. Strong reliance was placed by the learned standing counsel for the department on M/s. Ujagar Prints Limited, a case under the Central Excise Act, 1944, prior to amendment in the year 1990. Interpreting the word ''manufacture' the Apex Court has laid down that by amending the definition of manufacture in the year 1990, the scope of ''manufacture' has been enlarged. The amendment has sought to equate the processing with manufacture. The vires of the amended definition of manufacture was in issue. The Apex Court ruled that by including the processing with manufacture, the legislature has not exceeded in its power and it is covered under Entry No.48, List 1. The moot question is whether that definition of 'manufacture' which was amended subsequently as contained in the Central Excise Act can be imported for the purposes of the present Act. The Textile Committee Act and Central Excise Act are two enactments with different purposes and objects. The Central Excise Act levies duty on the production of goods. The Textile Committee Act has been enacted with a view to improve the standards of textile meant for export. The aim and object of Amending Act No.51 of 1973 stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of incorporation or reference it is trite that it is not permissible to interpret a word in accordance with its definition in other statute and more so when the same is not dealing with any cognate subject. (See State of Kerala v. Mathai Verghese 3, SSC at p. 753 and Feroze N. Dotivala v. P.M. Wadhvani4, SSC at p. 442) The Supreme Court in Union of India vs. P.C. Jain, AIR 1981 SC 951, has clearly held in para 1 that if a particular expression is not defined in a Act, its definition in another Act cannot be imported into former Act." It is not safe to import, viewed as above, the widely worded definition of 'manufacture' in the Excise Act to this Act, object and purpose of both the Acts being different. The word manufacture should be understood as it is understood in the common parlance. The textile remains textile after colouring, dyeing etc.. The next case, a decision of Delhi High Court in the case of Nath Brothers Exim. International Ltd. v. Union of India and Ors. (supra) strongly relied upon by the respondents. A close reading of the judgment would show that in that case the petitioners were manufacturers of readymade garments which is covered within the definition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Union of India others reported in AIR 1989 SC 156 then too as a manufacturer of the Power Loom Industry he would be entitled to the benefit of the proviso at that stage of manufacture because there is no bar under the proviso with regard to the stages of manufacture." We fully concur with the view of the learned Single Judge. In view of the fact which is not disputed that the petitioners are job workers and are 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 has been set up to carry on inspection to enable the exporters to claim replacement entitlements under the registered exporter policy as fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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