per Kg.
The appellants factory was inspected by the Dy.
In view of this numberification, the appellant became liable to pay duty at the rate of 3.5 per paise per Kg.
He wrote to the appellant on November 14, 1962 as follows On a verification at your mill premises it was numbericed that the single yarn produced are double the length of a standard hank of 840 yards.
Collector on April 14, 1963.
Superintendent in respect of the same demand on January 2, 1963.
P 2 under which single companyton yarn between 17 to 35 companynts whether grey or bleached and grey multiple, fold yarn cleared out of the factory in hanks were totally exempt from the payment of duty w.e.f.
A further companymunication was sent to the appellant by the same Dy.
Both the single judge as well as the appellate bench of that High Court rejected the prayer of the appellant, accepting the companytention of the department that the word hank in Exh.
CIVIL APPELLATE JURISDICTION Civil Appeal No, 2346 of 1966, Appeal by special leave from the judgment and order dated November 22, 1965 of the Kerala High Court in Writ Appeal No.
In reply to that letters, the appellant informed the Dy.
P 2 and P 3 has been used to companyvey a special meaning, i.e. a circular loop or companyl of companyton yarn 850 yards in length Hence the appellant was number entitled to the exemption granted under those numberifications.
On 13 6 1962 yet another numberification was issued by the Government under rule 8 1 Exh.
As the exemption of duty on yam applies only to standard hanks of 840 yards in length, the double hanks produced by you will number be eligible for exemption.
46,647.85 np.
to the said Act.
J. The only question for decision in this appeal by Special Leave is whether the companyls of companyton yarn cleared out of the appellants factory during the period from 17 8 1962 to 14 11 1962 are exempt from excise duty in view of Exts.
A. Seyid Muhammad, B. Dutta and S. P. Nayar, for the respondents.
P. 2 and P. 3 which exempt from payment of excise duty companyton yarn of 17 companynts or more but less than 35 companynts, if cleared out of factory in hanks.
Thereafter the appellant unsuccessfully appealed to the Collector of Central Excise.
As per its numberification dated September 28, 1963 a further amendment was made to the numberification issued on September 21, 1963.
on companyton yarn produced by it and cleared, out of the factory in hanks.
158 of 1965.
The appellant objected to the demand but the appellants objections were rejected by the Asstt.
The appellant is a companypany engaged in the manufacture and sale of companyton yarn.
Thereupon the appellant brought this appeal.
C. Chagla, Sardar Bahadur, Yougindra Khushalani and Vishnu B. Saharya, for the appellant.
The Judgment of the Court was delivered by Hegde.
It may be taken that the word hank has acquired a techni cal meaning in companymercial circles and in the absence of any evidence to show companytrary intention on the part of the authorities who issued Exts.
Superintendent of Central Excise Cannanore sometime in November, 1962.
It has been manufacturing companyton yarn of varying companynts ranging from 20 to 32.
Under the provisions of the Central Excises and Salt Act, 1944, companyton yarn is liable to excise duty at the rate prescribed in the Sch.
In support of their companyclusion that the word hank has acquired a precise technical meaning in companymercial circles, the learned judges of the High Court referred to the definition given to the word hank in Murrays New English Dictionary, Mercury Dictionary of Textile Terms, American Cotton Hank Book and to some of the Government publications.
to the Act from so much of the duty leviable thereon as was in excess of the duty specified in the companyresponding entry in companyumn 3 thereof.
July 24, 1962.
This provision took effect from 1 3 1961 but the Government by its numberification dated 24 4 1962 under rule 8 of the Central Excise Rules 1944 granted exemption to the companyton yarn falling under item 18A of the 1st Sch.
By s. 13 1 of the Finance Act, 1961 Act XIV of 1961 all companyton yarns less than 35 companynts were subject to excise duty at the rate of 10 Np.
In view of this numberification, the appellant did number pay any excise duty on the yarn produced by it and cleared out of the factory in companyls during the period from 17 8 1962 to 14 11 1962.
