PRINCE KHADI WOOLLEN HANDLOOM PRODUCTION COOP INDUSTRIAL SOCIETY LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) In all these matters the original contention of the Revenue was that the appellants were not entitled to the benefit of the Exemption Notification No. 30/81-CE dated 1/3/1981, issued under Rule 8 (1 of the central Excise Rules because the appellants did not satisfy the condition of being registered as handloom cooperative societies or organisations set up or approved by the government for the purpose of the development of handlooms. Ultimately, before the tribunal, this contention of the Revenue was rejected. What the tribunal considered, and held in favour of the Revenue, was that the appellants had not shown that they were producing the woollen fabrics in "a factory owned by" each of them.

(2.) It does not appear that at any stage of the proceedings the appellants had been required to show that the factories in which they produced the woollen fabrics were owned by them. The order of the tribunal refusing them the exemption on this ground must, therefore, be set aside.

(3.) If it is the case of the Revenue that the appellants are not entitled to the benefit of the exemption under the said notification by reason of the fact that the appellants do not own the factories in which the woollen fabrics are produced, the Revenue must give to the appellants a notice to show cause in this regard and the matter must be processed from that stage.