TMI Blog1973 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned notification is discriminatory as it classifies factories similarly situated into two classes, those who manufacture matches exceeding 75 million and above and those who manufacture less than 75 million inasmuch as different rates of duty are prescribed and that the respondents were also in error in rejecting the petitioners application for grant of exemption which was granted to the previous owner of the factory and as such the petitioner is entitled to the relief prayed for. 3.The facts necessary for determination of the points urged by the learned counsel are these :- Prior to the re-naming of the petitioner's match factory which is now run in the name and style of M/s. Vani Match Factory, it was known as Prime Match Factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1967 which reads : "In the proviso to the said notification after Clause-1 the following clauses shall be inserted namely (i) nothing contained in the foregoing clause shall apply to any factory other than factories (a) whose production during the financial year 1966-67 did not exceed 100 million matches (b) whose total clearances of matches during the financial year 1967-68 as per the declaration made by the manufacturer before the 4th September, 1967 in pursuance of this proviso is not estimated to exceed 75 million matches." The case of the petitioner is that it is entitled to the exemption as it never exceeded the limit of 25 million matches in any financial year. In this connection it was also pointed out that the previous owner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction in a particular match factory that is the criterion. If I am to accept the argument of Mr. Jogayya Sarma that the change of ownership should be the criterion for levying duty then to evade payment of duty at the rate of Rs. 4.30 ps. In a year, the ownership may be changed several times so as to defeat the object of levying higher duty at the rate of Rs. 4.30 ps. No where in the notification do we get that any change of ownership will enable the owner, if during the period of his ownership the production is below 75 million matches, to pay at the concessional rate of Rs. 3.75 ps. What determined the rate of levy of duty is not as to how many persons owned a particular factory during a financial year but the number of matches that a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing reasonable relating to the object intended to be achieved, namely, to prevent the evasion of tax." It should be remembered that in matters of taxation the legislature is given wide discretion and in this case too, a particular date has been fixed for levying higher rate of duty. It is for the competent authority to decide from which date a particular law should come into operation. A Division Bench of this Court in W.A. No. 64/72 dated 27-10-1972 has construed the notification in question and observed that the notification clearly draws a line between a manufacturer who exceeds production of 100 million matches per gross of boxes of 50 matches each and those who produce below that quantity and upheld the impugned notification. I am boun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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