TEXTILE COMMITTEE Vs. SAIBABA COTTON WASTE SPINNING MILLS

JUDGEMENT

(1.) Rule. Heard forthwith.

(2.) On behalf of the Petitioner, it is submitted that they were not aware that the Petitioner was manufacturing textiles which were leviable to cess and it is only on or about 22.8.1995 that they learnt that the Respondent No. 1 was manufacturing textiles and not submitting returns. Under the Act, rules have been framed which are known as Textile Committee (Cess) Rules, 1975 which hereinafter shall be referred to as the "Rules". They are in force from 1.4.1975. In the instant case, the cess demanded is from the year 1986. It is submitted on behalf of the Petitioner by their learned counsel, that the notification relied upon by the appellate authority based on which they have passed their judgment would be inapplicable. It is submitted that at the highest, it is only waste cotton which will be exempted from the cess but not the textile prepared from the waste cotton. The learned tribunal in proceeding on the basis that the textile manufactured from the cotton waste is exempted, has clearly misdirected itself in law and consequently the order of the appellate tribunal, suffers from an error of law apparent on the face of the record and consequently requires to be set aside.

(3.) To correctly appreciate and understand the issue and the controversy which has arisen, it will be necessary to refer to some of the provisions of the Act and the rules as framed thereunder :