TMI Blog1977 (6) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... . 114/75 from payment of Central Excise Duty levied under item No. 68 of the First Schedule to the Act. 2. The petitioner is a manufacturer of `Agarbathis at Secunderebad. They are handmade. No power or machinery is used in their manufacture. On the ground that `Agarbathis is a handicraft he claimed exemption from payment of duty. The Assistant Collector, Central Excise, Hyderabad informed him on 1-10-1975 that Agarbathis are included in the list of items coming under handicrafts as approved by the All India Handicraft Board and, therefore, they are attracted by the exemption granted by the Central Government with effect from 30-4-1975. But the Ministry of Finance, Government of India, in their letter dated 1-5-1975, laid down certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handmade Agarbathis constitute handicrafts. If they are, they are exempt from payment of duty. lf they are not, they are not exempt. The word `handicraft is not defined either in the Act or the rules. In Dunlop India Ltd. v. Union of India (AIR 1977 SC 597) the Supreme Court observed in para 31. - lt is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the trade and its popular meaning should commend itself to the authority. In para 36 the learned Judges observed : It is clear that meanings given to articles in a fiscal statute must be as people in trade and commerce, conversant with the subject generally treat and understand them in the usual course. But o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Shri P. Ramanatha Aiyer, handicraft is defined as Manual skill manual art or trade . Going by these defintions, there can be no doubt that the Agarbathis manufactured by hand by the Petitioner are handicrafts. 12. Now I will turn to the meaning given by persons who deal in handicrafts. The All India Handicrafts Board (Co-operative Section), New Delhi, have published a book called Guide Book for Handicrafts Co-operative . It gives information regarding credit facilities for handicraft Co-operatives, marketing assistance, training, raw materials, design, services, etc. In Annexure No. 1 of that book the list of handicrafts is given incense, is shown as handicraft. Here, it may be remembered that All India Handicrafts Board is a Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated Agarbathis as a handicraft. Thus going by the popular meaning and the commercial meaning, I have no hesitation in holding that Agarbathis made by hand are handicrafts. 15. But the learned Counsel for the Central Government, relying upon the Ministry s letter dated 19-9-1975 and the Standing Order of the Collector of Central Excise, Hyderabad dated 4-10-1975, has contended that Agarbathis is not a handicraft because chemical process is involved in their manufacture. I have already referred to the Ministry s letter dated 19-9-1975. Even applying the test propounded by them, I have no hesitation in holding that Agarbathis are handicrafts. 16. In the Standing Order of the Collector of Central Excise, Hyderabad, it is stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment of India, have given an opinion that Agarbathis are not handicrafts and when the Collector of Central Excise, Hyderabad, has also expressed the same opinion, I do not see any point in saying that the petitioner has an alternative remedy. I do not understand what useful purpose would be served by driving the petitioner to file an appeal or a revision. That will be an appeal from caesar to caesar. On the facts of this case, I am of the opinion that the alternative remedy is rendered nugatory. 18. Consequently, I hold that Agarbathis fall under the Item handicrafts and, therefore, they are exempt from payment of Excise Duty. The Writ Petition is allowed, but in the circumstances of the case I direct each party to bear his cos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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