VIJAY TEXTILE Vs. UNION OF INDIA

JUDGEMENT

(1.) In this group of seven matters every one of the petitioners is a processor of fabrics that is task of bleaching dyeing and printing of fabrics which are already in existence is done by these processors. Three out of these petitioners are processors of art silk fabrics whereas the remaining are processors of cotton fabrics. These processors are only the owners of processing houses. They have no weaving or spinning departments. The fabric which is woven on power looms mostly is brought to them for being processed by bleaching dyeing and printing so as to make the fabric more attractive to the consumer.

(2.) The objection by these processors is to the mode of the levy of excise duty under the First Schedule to the Central Excises and Salt Act 1944 hereinafter referred to as the Act. Item 68 refers to All other goods not elsewhere specified manufactured in a factory but excluding (a) alcohol all sorts including alcoholic liquors for human consumption; (b) opium Indian hemp and other narcotic drugs narcotics; and (c) dutiable goods as defined in sec. 2(c) of the Medicinal and Toilet Preparations (Excise Duties) Act 1955 and the Explanation to Item 68 points out that in this item the expression factory has the meaning assigned to it in sec. 2(m) of the Factories Act 1948 Under sec. 2(f) of the Act manufacture includes any process incidental or ancillary to the completion of a manufactured product. Item 18-A of the Schedule to the Act refers to Cotton twist yarn and thread all sorts containing not less than nine per cent by weight of cotton calculated on the total fibre content whether sized or unsized. Item 19 of the Schedule provides for the description of goods and rates of duty. Item 19 covers cotton fabrics and is in these terms: Cotton fabrics means all varieties of fabrics manufactured either wholly or partly from cotton and includes dhoties sarees chadders bed-sheets bed-spreads counterpanes table-cloths embroidery in the piece in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials but does not include any such fabric if it contains

(3.) Sec. 3 is the charging section and says that: