TMI Blog1975 (12) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ncourage cooperative efforts among manufacturers of Khadi and persons engaged in village industries. Section 15(h) specifically states that the Commission may take steps for ensuring the genuineness of, and for granting certificates to producers of, or dealers in, Khadi or the products of any village industry. These provisions indicate that the Khadi and Village Industries Commission is competent to grant certificates recommending village industries for exemption under Clause (d) of the Notification dated 4 September, 1967. The appeals are accepted. The orders of the High Court are set aside and the petitions are dismissed - 133-188 of 1975 - - - Dated:- 4-12-1975 - A.N. Ray, C.J.I., M.H. Beg, R.S. Sarkaria and P.N. Shinghal, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification dated 4 September, 1967. 7.The case of the respondents in the High Court was that they filed declaration on 22 December, 1969 for 1969-70 that they would not produce more than 75 million match sticks during the financial year. The respondents claimed to be entitled to the concessional rate of Excise duty at Rs. 3.75 per gross pursuant to the Notification dated 21 July, 1967. The further case of the respondents in the High Court was that the Notification dated 4 September, 1967 was issued stating that the concession of Rs. 3.75 per gross would be available to such "D" Class manufacturers who had filed the declaration before 4 September, 1967. The respondents challenged the fixing of the date 4 September, 1967 as an arbitrary t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a particular date was held to be reasonable because the choice of a date was to protect the smaller units in the industry from competition by the larger ones and that object would have been frustrated if by adopting the device of fragmentation, the larger units could become the ultimate beneficiaries of the bounty. 10.Counsel for the respondents relied on an observation of this Court in M/s. Parameswaran Match Works case (supra) at Page 576 of the Report to the effect that the manufacturers who came to the field after 4 September, 1967 were entitled to concessional rate of duty if they satisfied the condition prescribed in Clause (d) of the Notification dated 4 September, 1967. In M/s. Parameswaran Match Works case (supra) the match wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in force". There are no allegations in the petitions in the High Court that the respondents were recommended by the Khadi and Village Industries Commission for exemption as bona fide cottage units or were set up by cooperative society registered under any law relating to cooperative societies. No case was made by the respondents in the petitions on the basis of exemption under sub-clause (d). 12.A contention was advanced by the respondents that the Khadi and Village Industries Commission was not competent to make any recommendation as contemplated in sub-clause (d). Section 15 of the Khadi and Village Industries Commission Act, 1956 which speaks of the functions of the Commission states in Clauses (c), (d), (f), (g) and (h) that the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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