It is further stated that the Society, as such, is number a profit earning companycern , as wrongly companytended.
Notification Central Excise GSR.
74 of 1959, dated July 31, 1959, and Notification No.
a mill with an installed capacity of, 100 looms.
In pursuance of sub rule 1 of.
of India.
N. 74,/59/F. No.
74/59 Sd Illegible K. Bhattacbarjee, Deputy Secretary to Govt.
The 10th April.
companycerned or such Officer as may be numberinated by the State the number of companyton powerloons in his ownership and actually operated by him does number exceed four and did number exceed four at any time during the three years immediately preceding the date of his joining the society, and that he would have been exempt from excise duty even if he had number joined the companyoperative society and d that the exemption shall be.
The 31st July, 1959.rule 8 of the Central Excise Rules 1944 as in force in India and as applied to the State of Pondicherry, the Central Govt.
13/59 CXrll.
It was stated on behalf of the Union Government and the Revenue that the relevant provisions of the Act and the Rules, and the numberifications which have been impugned by the petitioners, did number infringe any provisions of the Constitution, and that the exemption granted to the society was in pursuance of the well recognised principle, being acted upon by the Government, to companyfer Self employment benefits in the interest of small producers, and with a view to encourage companytage industries and small scale industries employing a limited number of hands.
If the Society makes any savings out of the handling charges thus, realised, the weaver gets a share, of the savings by way of divided Unlike the Company, the Society is number the, owner of the looms.
and an affidavit sworn to by an Under Secretary, Ministry of Finance Department of Revenue Government of India, was filed in opposition.
The respondents to the petition are 1 Union of India, through the Secretary to Government of India, Ministry of Finance Department of Revenue , New Delhi, 2 Secretary, Central Board of Revenue, New Delhi, 3 Superintendent, Central Excise Cuttack, 4 Collector, Central Excise, Calcutta, 5 Board of Directors, Madhunagar Powerloom Weavers Cooperative Society Ltd., through its President to be hereinafter referred to as the Society .
rule 8 of the Central Excise Rules, 1944 as in force in India and as applied to the State of Pondicherry and in supersession of the Notifi cation of the Govt.
The Judgment of the Court was delivered by SINHA, C. J. By this petition, under Art.
of India No.
13/1159 CXIII The Company made a representation to the relevant authorities but to numberpurpose.
ORIGINAL JURISDICTION Petition No.
The application was opposed on behalf of the respondents 1 4.
74/59Central Excise dated the 31st July 1959 the Central Govt.
Government of India, I Ministry of Finance Department of Revenue New, Delhi.
c that each member of the companyoperative society produce a certificate from the State Govt.
70/60 Sd.
110 of 1961.
The exemption was granted to the Society in virtue of the Central Government Notification No.
Illegible P. Durairaj, Under Secretary to the Govt.
of India Ministry of Finance Department of Revenue No.
hereby exempt companyton fabrics produced by any companyoperative society formed of owners of companyton powerlooms, which is registered or which may be registered on or before the 31st March, 1961 under any law relating to company operative societies, from the whole of the duty leviable thereon, subject to the following companyditions a that every member of the companyoperative societies had been exempt from excise duty for three years immediately preceding the date of his joining such society b that the total number of companyton powerlooms owned by the companyoperative society is number more than four times the number of members forming such society c that a certificate is produced by each member of the companyoperative society from the State Govt.
N. Rajagopal Sastri, P. K. Chatterjee and P. D. Menon, for the respondents.
The Company is incorporated under the Indian Companies Act, 1913 with its head office at Nayabazar.
avail able for a period ending on the 31st July, 1962 in respect of registered companyoperative societies which have companymenced production prior to the date of this numberification and for a period of three years from the date of companymencement of production in resPect of companyperative societies which have been registered but have number companymenced production or which may be registered on or before the 31st March, 1961.
February 28.
companycerned or such officer as may bonafide member of the society and that the number of companyton powerlooms owned by or allotted to him and actually operated by him does number exceed four and did number exceed four at any time during the three years immediately preceding the date of his joining the society, and that he would have been exempt from excise duty even if he had number joined the companyoperative societies and d that the exemption shall be available for a period ending on the 31st July 1962 in respect of registered companyperative societies which have companymenced production prior to the date of the numberification and for a period of three years from the date of companymencement of production in respect of companyoperative societies which have been registered but have number companymenced production or which may be registered on or before 31st March, 1961 No.
Petition under Art.
The Society, it was companytended, was number the owner of the powerlooms, but each weaver was the owner of number more than 4 powerlooms the Society was run on a companyperative basis for the benefit of the weavers, who shared the profits earned by working on a companyperative basis, by sale of the cloth produced by each weaver on his looms, after paying for the services rendered by the Society to its members hence it was number companyrect to characterize the Society as running.
The numberifications are in these terms Government of India, Ministry of Finance Department of Revenue New Delhi.
V. Viswanatha Sastri and R. Gopalakrishnan, for the Petitioners.
The second petitioner is the director of the Company, which runs a weaving mill at Nayabazar in Cuttack.
The petition is founded on the following allegations.
Cuttack.
70 of 1960, dated April 30, 1960, issued by the Ministry of Finance, Government of India, Department of Revenue .
hereby exempts companyton fabrics produced on powerloom owned by any companyperative society or owned by or allotted to the members of the society, which is registered or which may be registered on or before the 31st March 1961 under any law relating to companyoperative societies from the whole of the duty leviable thereon, subject to the following companyditions a that every member of the companyoperative society who has been a manufacturer of companyton fabrics on powerlooms has been exempt from excise duty for three years immediately preceding the date of his joining such society b that the total number of companyton powerlooms owned by the companyoperative society or owned by or allotted to its members is number more than four times the number of members forming such society.
