ROLEX PROCESSORS (P) LTD. Vs. TEXTILE COMMITTEE

JUDGEMENT

(1.) The three Petitioners are companies engaged in the processing of man-made fabric and ploy vinyl fabric falling under Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985. By these petitions they challenge the notices of demand of cess under the Textile Committee Act 1963 (TCA) and the Textile Committee Cess Rules 1975 (TCCR) made by the Textiles Committee, Ministry of Textiles, Government of India. Each of the petitioners also challenges the orders passed by the Textile Committee Cess Appellate Tribunal ("Tribunal") dismissing each of their appeals and confirming the demand of cess.

(2.) The Petitioners state that they receive grey cloth for processing on job work basis from various traders considered to be "deemed manufacturers" in terms of the Central Excises Act 1944 (CE Act). The grey cloth so received is subjected to the processes of bleaching, printing or dyeing and are then returned to the traders on payment of excise duty on the declared value of the grey fabrics after adding the processing charges. The Petitioners therefore contend that they do not "manufacture", 'cloth' or "fabric" within the meaning of "textiles" under Section 2(g) TCA.

(3.) It is further contended that in terms of the Proviso to Section 5-A TCA no cess can be levied on textiles manufactured from out of handloom or power-loom industry. It is claimed that the Petitioners are purchasing the grey cloth from units having less than 50 looms. Therefore, the charging Section 5-A is not attracted.