SOUTH INDIA VISCOSE LIMITED Vs. TEXTILES COMMITTEE

JUDGEMENT

(1.) THIS appeal arises out of W.P. No. 2191 of 1969 filed by the appellant for the issue of a writ of prohibition or any other appropriate writ, direction or order restraining the first and third respondents from taking any further steps in pursuance of Notice No. 55/405/68-AC, dated February 20, 1969, of the first respondent and Reference No. 11725/ 69-A5, dated July 14, 1969, of the third respondent from collecting the sum of Rs. 78,433 from the petitioner.

(2.) THE appellant is a public limited company and its objects, inter alia, as contained in its memorandum of association are : to carry on business of manufacturing, buying, selling, distributing, exchanging, converting, altering, importing, exporting, processing, twisting or otherwise handling or dealing in rayon yarn which includes artificial silk yarn and all synthetic fibres whatsoever for textile use, cellulose staple fibre and yarn also known as spun rayon synthetic fibres and yarns and other staple fibre or fibrous materials or allied products, etc. THE company also used to purchase rayon fabric and other fabrics and other fibrous materials for the purpose of export in order to obtain import entitlement. THE appellant-company commenced its business on November 3, 1958, and has been carrying on business from that date. THE first respondent, the Textiles Committee, Bombay, is a body corporate established by the Central Government under Section 3 of the Textiles Committee Act, 1963 (Central Act 41 of 1963), (hereinafter referred to as " the Act"), having perpetual succession and a common seal with power to acquire, hold and dispose of property. THE second respondent is the Association of Man-Made Industry, Bombay. THE third respondent is the Tahsildar, Avanashi, Coimbatore, seeking to recover the alleged dues and the fourth respondent is the Union of India.

(3.) IN the affidavit in support of the writ petition the following main points were put forward questioning the levy :