KARUR DISTRICT DYEING ALIAS BLEACHING FACTORY OWNERS ASSOCIATION Vs. ASSESSING OFFICER TEXTILE COMMITTEE GOVERNMENT OF INDIA MINISTRY OF TEXTILES

JUDGEMENT

(1.) THE petitioner association has filed this writ petition seeking a Writ of Declaration declaring that the job contracts of bleaching and dyeing entered into by its Members cannot be subjected to imposition of Cess under the provisions of Section 5a of the Textiles Committee Act, 1963.

(2.) THE case of the petitioner association, in short, is as follows:

(3.) THE main grounds urged in the writ petition are that (i) the members of the petitioner association do not manufacture any of the items falling within the definition of "textiles" under Section 2 (g) of the Act and the only activity carried on by them on job work basis is bleaching and dyeing yarn which is already manufactured and a manufactured item cannot be manufactured again, (ii) even assuming without conceding that the process constitutes a process of manufacture, unless there is a manufacture of articles falling within the definition of "textiles" by the assessee, the provisions of the Act cannot be invoked, (iii) though the noticees sought a personal hearing, demand is made without affording such an opportunity which is obligatory under the Act and Rules and this vitiates the entire proceedings, (iv) the Cess proposed to be levied has not been hitherto levied since 1975 and if levied, it would eat away a substantial portion of the income of the members thereby putting them to a great hardship which they cannot pass on to their customers.