 thli, central exci:leg aj'jdsalt al'jd additional duties 0 f b;xc i ue, (j\hln:i)ivi~1') bi ll, 19801 •page2, line40, -fori ad valrr-e m , h; 1 readi ad valoremplus'2i-age 3, line9,-for"deri v at iveilread"derivatives"3page3, line3) --,foriif'o l lowin qgiiread"fo llowin g ii4page 4,line8,-fer"a se tiread"case"5page5, line23,-omit"by tinevidelhi 1ja::2uary22l-1980 __lviagha 2,1901(8aka) itiu no 7 of 1_ tlte central excises and salt and additional dulles of excise (amendment) bill, 1980 a billfuriher to amend the ceattcat exc~ gad salt act!, 1~, ad th4 additlional duties of excise (goods of special impon:a'rcfl) act~ 1957 be it enacted by pathament in the thirtieth year of the repuilli of india as follows:-1 (1) 'i'bts aet may be called the central excises and salt and additional duties of excise (amendment) act, 1980' short title and commenc  ment s (2) it shall be deemed u> daft come to forcer ()n the 24th day of november, 1979 lof 1944 amendment of tied 2 2 in the central excises and salt act, 1944 (hereinafter referred to as the central excises act), in section 2, in clause (1), after sub-claule (iv), the following sub·clauses shall be inserted, namely:-10 "(v) in relation to goods comprised in item no 19 i of the first 'scbeguje, ineludes bl8ehmg, rnerceristrrg, dyeing, printing, water-~g, rttbberising, shrink-proofing, organdte processing or any other ~ 01" anyone 01' more of these processes; (vt) in relation to goods comprised in item no 21(1) of the is firat scde4ule, includes milling, rading, blomgi tentering, dyeing or 8ifti1 other process or anyone or more of these procesles; (vit) in relation to' goociis comprtsed in item no 22 (1) of the f'irs:tj' 8ehectale, includes bieachi'n-g, dyeing, printing, shrink-proofini tentering, heat-setting, crease resistant prote$sii¥g or any other pro-20 cess or anyone or more of these processes,"  3 in the central excises act, in the firat schedule,- am"'- ment of i'1rlt schedule(i) in item no 19, for sub-item i, the fouowin, sub-item ahall be iubstitl\ted, namely:-5 "i cotton fabrics, other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials-(a) cotton fabrics, not subjected to any process twenty per cent j~ ad valorem": (b) cotton fabrics, subjected twenty per cent to the process of bleaching, merad valorem" cerlsmg dyeing, printing, waterproofing, rubber ising, shrink-proof-j 5 ing, organdie processing or any other process or any two or more of these processes (ii) in item no 21, for sub-item (1), the following sub-item shall be substituted, namely:-20 |                                    | "(      | 1)                  ||------------------------------------|---------|---------------------|| woollen fabrics,                   | other   | than                || embroidery in the piece, in strips | or      | in                  || motifs-                           |         |                     || 25                                 |         |                     || (a)                                |         |                     || woollen fabrics, not               | sub-    |                     || jected to                          |         |                     || any                                | process |                     || twelve                             |         |                     || per                                | cent   |                     || ad                                 |         |                     || valorrem                          |         |                     || twelve                             | per     | cent               || ad                                 |         |                     || valorem                           |         |                     || ii                                 | ;       |                     || (b)                                |         |                     || woollen fabrics, subjected         |         |                     || to                                 | the     | process of milling, || blowing, tentering,                | dyeing  |                     || or                                 | any     |                     || other                              | process | or                  || of these processes                 |         |                     || 30                                 |         |                     |(iii) in item no 22, for sub-item (1), the following bub-item shall be substituted, namely:-35 •• (1) man-made fabrics, other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials-twenty per cent (a) man-made fabrics, not subjected to any process  ad valorem'~ 40 rupees ftve per quare metre twenty per cent ad valorem plu1 rupees five per iquare metre" (b) man-made fabrics, subjected to the process of bleaching, dyeing, printing, shrink-proofing, tentering, heat-setting, crease resistant processing or any other procesl or any two or more of thn_ procell  t in the additional duties of excise (goods ot special importance) act, 1957, in the first schedule,-(i) in item no 19, for sub-item i, the following sub-item shall be substituted, namely:-5  "i cotton fabrics, other than (0 embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated, coated or laminated with preparations of cellulose derivative or of other artificial plastic materials-10 five per cent ad valorem five per cent ad valorem'''; 15 (a) cotton fabrics, not subjected to any process (b) cotton fabrics, subjected to the process of bleaching, mercertsing, dyeing, printing, waterproofing, rubberising, shrink-proofing, organdie processing or any other process or any two or more of these processes (ii) in item no 21, for sub-item (l), the followini sub-item 20 hall be substituted, namely:-"(1) woollen fabrics, other than embroidery in the piece, in strips or in motifs-five per cent 25 ad valorem five per cent ad valorem"; 10 (a) woollen fabrics, not subjected to any process (b) woollen fabrics, subjected to the process of milling, ralslng, blowing, tentering dyeing or any other process or any two or more of these processes 35 (iii) in item no 22, for sub-item (1), the followinqi sub-item shall be substituted, namely:-" (1) man-made fabrics, other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials-(a) man-made fabrics, not subjected to any process '  seven and a half per cent ad t)al·o'rem plus rupees two per square metre seven and it half per cent ~'4 - : ad valorem plua 45 rupees two per square metre" (b) man-made fabrics, subjected to the process of bleaching, dyeing, printing, shrinkproofing, tentering, heat-setting, crease resistant processing or any other process or any two or more of these processes i (1) every central act as in force at any time duringtlaepericml commencing with the appointed day and ending with the day immediately ~ing tbe date of commencement of this act, and pro~ding tar or relating to the levy of duties of excise on-(a) "cloth", "cotton cloth" or, as the @be may be, "cotton s fabrics", (b) "woollen fabrics", (c) "rayon or artificial silk fabrics" or, as the ase may qe, "manmade fabrics", shall have and shall be deemed to have always haddect during the 10 saki· period as if-(t) such "cloth", "cotton cloth" or, as the case may be, "cotton fabrics" comprised for the purposes of the duty leviable under that actfabrics, made fabric-, etc, durcertain put period tion (a) a sub-item covering such "cloth", "cotton cloth" or is "cotton fabrics" not subjected to any process mentioned in subclause (v) of clause (1) of section 2 of the central excises act, as amended by this act; and (b) a sub-nem covering such "cloth", "cotton cloth" or "cotton fabrics" subjected to any suchproce&s or any two or more 20 such processes, and the rate of duty specified in such act with respect to such "cloth", "c!gtton cloth" or "cotton fabrics" had been specified separately with respeet to each of the aforementioned sub-it-ns thereof; (ii) such "woollen fabrics" comprised for the purposes of duty 25 leviable under that act-(a) a sub-item covering such "woollen fabrics" not subjected to any process mentioned in sub-clause (vi) of clause (f) of section 2 of the central excises act, as amended by this act; and (b) a sub-item covering such "woollen fabrics" subjected 30 to any such process or any two or more suoh pt'ocesses, and the rate of duty specifted in such act with respect to iuch "woollen fabrics" had been specifted separately with respect to each of the afqrementioned sub-items thereof; (iii) such "rayon or artificial silk fabrics" or "man-made fabrics" 3s comprised for the purposes of duty leviable under that act-(a) a sub-item covering such "rayon or artificial" silk fabrics" or "man-made fabrics" not subjected to any process mentioned in subclause (vii) of clause (f) of section 2 of the central excises act, as amended by this act; and 40 (8) a sub-item covering s'ileh "rayon or artifidai silk fabrics;' or "man-made fabrics" subjected to any such process or any two or mol'e such procene8, and the rate of duty $peculed in such act with respect to such "rayon or artificial silk fabrics" ami "man-made fabrics" had been 45 specified separately with re~pect to each of the aforementioned sl1b· items thereof; and (w) the amendmeftts to clause <i) of retion 2· of the central excises ~t made by section 2 of this act had been in force at all relevant times subject to the modifications that the relerence therein-(a) to tae "goods compriljed in item no 19 1 of the first 5 ~haduletl iiball be ~nstrued as a referern::e to such "cloth", "cotton cloth" or, as the case may be, "cotton fabrics"; (b) to the "goods comprised in item no 21 (1) of the first schedule" shall be construed as a reference to "woollen fabrics"; 10 (c) to the "goods comprised in item no 22 (1) of the first sehedule" shall be construed as a reference to sucl1 "rayon er artiftcial silk fabrics" or, as the cale may be, "man-mw fabrics"; and subject to such further modifications as the context may require (2) any rule or notification or any action or thing made, issued, taken or done or purporting to have b2ell made issued, taken 01" done under a 15 central act referred to in sub-section (1) before the date of commencement of this act, with respect to or in relation to the levy of duti(:s of excise on-(a) "cloth", "cotton cloth" or, as the case may be" "cotton fabrics", - - (b) "woollen fabries", (c) "rayon or artificial silk fabrics" or, as the case may be, "manmade fabrics", shall for all purposes by be deemed to be, and to have always been, as validly and effectively made, issued taken or done 8's if the provisions of this ls section had been in force at all material times and accordingly notwithstanding any judgment, decree or order of any court, tribunal or other authority-(a) all duties of excise levied, assessed or collected or purported to have been levied, assessed or collected before the date of commencement of this act, on-(i) "cloth", "cotton cloth" and "cotton fabrics" subjected to any proeesa, (ii) "woollen fabrics" subjected to any process, (iii) ,"rayon or artificial silk fabrics" and "man-made fabrics" subjected to any process, unde'r ~mv such central act shall be deemed to be, and shall be deemed always to have been, as validly levied, assessed or collected as if the provisioncj of this section had been in force on and from the appointed day; (b) no suit or other proceeding shall be maintained or continued in any court for the refund of, and no enforcement shall be made by any ccrurt of any decree or order directing the refund of, any such duties of excise which have been collected a~d which would have been validly collected if the provisions of this sect:on had been in force 1m and from the appointed day; (e) refunds shall be made of all such duties of excise which have been collected but which would not have been so collected if the provisions of this section had been in force on and from the appointed day; and (d) recoveries shall be made of all such duties of excise which s have not been collected or, as the case may be, which have been refunded but which would h:we been collected or, as the case may be, would not have been refunded if the provisions of this sect~on had been in force on and from the appointed day (3) for the removal of doubts, it is hereby declared that no act or 10 omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force erplanatioo-in this section-(a) "appointed day", in relation ur-(i) "cloth", means the 1st day of january, 1949; (ii) "cotton cloth", means the 28th day of february, 1954; i (iii) "cotton fabrics", means the 1st day of march, 1955; (iv) "woollen fabrics", means the 1st day of march, 1955; (v) "rayon or artificial silk fabrics", means the 28th day ~ 20 february, 1954; and (vi) "man-made fabrics", means the 18th day of june, 1977; (ib) "central act" includes ?ny prov:sion, in a bill introduced in the house of the people, in respect of which a declaration was 1tl of tnt made under section 3 of the provisional collection of taxes act, 1931; 2s (e) "duties of excise" means dures of excise levied under any  central act whether 3s such or as additional duties of excise or auxiliary duties of excise or special dut:es of excise c1t by any other name i (1) the central excises and salt and additional duties of excise 30 (amendment) ordinance, 1979, is hereby repealed  12 of 1971 (2) notwithstanding such repeal, anything done or any action taken under the ordinance so repealed shall be deemed to have been done or taken under the corresponding provision~ of this act central excise duty was levied for the first time on cotton fabrics in 1949, on man-made fabrics (rayon or artificial silk fabrics) in 1954 and od woollen fabrics in 1955 from the very early stages of the textile tarifr, with a view to achieving progression in the rate structure and to aliening excise control with the demands of different producing sectors, duti  itave been levied not only on grey fabrics but also at the stage of proc:etlsing such as bleaching, dyeing and printing 2 in its judgment dated the 24th january, 1979, in the real honest textiles and others vi union of india (special civil applications no 1552 etc of 1978), the gujarat high court held that the tetm "fabric" as used in the tariff description "cotton fabric" would refer to something that was woven; hence it could relate only to cloth in the grey stage; processing of the grey cloth either by bleaching, dyeing or printing did not amount manufacturing and both before and after processing it remained a fabric falling within the same item of central excise tariff (item 19-cotton fabrics, of the first schedule to the central excises and salt act)  the court arrived at a similar conclusion with respect to manmade fabrics falling under item no 22 of the same schedule the court observed that processing was an excisable activity covered by the residual tariff item no 68 of the said schedule the court accordingly ordered refund of the excise duties collected in excess by the government for a period of three years prior to the institution of the proceedings before the court alongwith interest at the rate of 12 per cent per annum 3 after the pronouncement of the above judgment several writ petitions were filed in various courts agitating the same point more than 130 cases were filed in the gujarat high court alone the revmue implications of the cases decided by the high co'ul't exceeded rs 30 t:rores 4 the judgment of the gujarat high court had the effect of completely upsetting the arrangement regarding levy of excise duties on textile fabrics which was being followed for several years the judgment also had the effect of disturbing the balance evolved between different sectors of the textile industry, besides putting large amounts of revenue at stake in so far as past assessments were concemed, refund of excise duties to manufacturers as ordered by the high court would have only meant a fortuitous and windfall benefit to such persons without any relief to the ultimate consumers who had purchased the fabrics and had bome the burden of the duties the same position holds good in the case of woollen fabrics as well 5 in otder to overcome the difficulty wh:ch arose as a result of the judgment of the gujarat high court, it was proposed to suitably amend the central excises and salt act, 1944, and the additional duties of excise (goods of special importance) act, 1957 and also to validate the past levies in respect of those fabrics accordingly, the central exclsei and salt and additional duties of excise (amendment) bill, 1979 was introduced in the house of the people on the 18th may, 1979 as the house of the people had been dissolved and the council of states was _tilt session and the presidem was satilied that circumstances exilted which tendered it necessary for him to take immedime action to glw etrect to the provisious of th& blll, the central excises and salt add addwaal dudes ot excise (amendment) ordinance 19'19 (12 of ~ was promulpted by the president on the 24th nov~r, li79 6 the bill seeks to rep·tbe pn~, 01, tbe ord_  , nirw dijlm; the 16th january, 1980 memorandum regarding modification contained in the bill to 7'epltjce the cent7"cd e~ au salt elm adchtioftal duties of ezdibe (amendment) ordinance, 1979 the definition of "appointed day" contained in the ezpzcnation to section 5 of the ordinance has been modified to spell out separately the appoidited day with reference to cloth, cotton cloth, cotton fabrics, woollen fabrics, rayon or artificial silk fabrics and man-made fabrics (vide expulnation to clause 5 of the bill) the bili does not involve any other deviation from the ordinance   ' (1 of 1944) - - - - - dellnitions 2 in this act, unless there is anything repugnant in the subject or context,-- - - - - <f> "manufacture" includes any process incidental or ancill8lf to the completion of a manufactured produ~t; and - - - - -  the first schedule (see section 3)| -----               | ----------    ||----------------------|----------------|| rate                 |                || of                   | duty           || item                 |                || description of goods |                || no                  |                || (1)                  |                || (2)                  |                || ---,-              |                || -                    |                || --                   |                || -                    |                || (3)                  |                || -                    | -              || -                    |                || -                    |                || -                    |                || -                    |                || 19                  |                || cotton               | fabrics-       || -                    |                || -                    |                || -                    |                || -                    |                || twenty               | per            || ad                   |                || valorem             |                || -                    |                || i                   |                || cotton               | fabrics        || (i)                  |                || embroidery           |                || in                   |                || the                  |                || piece,               | in             || in                   |                || motifs,              | and            || (ii)                 |                || fabrics              | impregnated,   || laminated            |                || with                 |                || pnparatioda          |                || of                   |                || cellu-               |                || lose                 |                || derivatives or       |                || of                   |                || other g'tiidai       |                || plastic              | materials     || -                    |                || -                    |                || -                    |                || -                    |                | 21 woollen fabrics-| "woollen fabrics"       | means    | all          | varieties of fabrics    ||-------------------------|----------|--------------|-------------------------|| in                      |          |              |                         || which                   | wool     | predominates | in                      || which                   | contain  | more         | than                    || of                      | wool     | and          | 50                      || non-cellulosic fibre or | yarn     | or           | both:                   || provided                | that     | in           | the                     || in                      |          |              |                         || the                     | piece   | in           | strips                  |predeminance or percentages, as the c:ase may be, shall be in relation to the base fabrics whieh are embroidered-| twelve    ||-----------|| ad        || valmem   |(1) woollen fabrics, other than embroidery in the piece, in strips 'or in motifs  - - - - -  22 man-made fabrics-"man-made fabrics" means all varieties of fabrics manufacturec;i either wholly or partly from man-made fibres or yarn and includes embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials in each of which man-made (i) ceu'ulosic fibre or yarn, or (ii) non-cellulosic fibre or yarn predominates in weight: provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials, s'uch predominance shall be in relation to the base fabrics which are embroidered or impregnated, coated or laminated, as the case may be--| twenty        | per    | cent    ||---------------|--------|----------|| ad            |        |          || valorem       |        |          || nl'ir         |        |          || rupees        | five   | per      || square metre |        |          |(1) man-made fabrics other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impre~­nated, coated or laminated with preparations of cellulose derivatives or of other artifi~ial plastic materials - - - - - - -  (58 of 1957) - • •the first schedule [see section 3 (1)] item no description of goods rate of additional duty  j in the i"irst schedule to the central excises and salt act, 1944 _-_-- ------------__---------_  _----_ (1) (2) (3) 19 cotton fabrics-| five                                      | per                               ||-------------------------------------------|-----------------------------------|| ad                                        |                                   || valorem                                  |                                   || 1                                        |                                   || cotton fabrics other than                 |                                   || (i)                                       |                                   || embroidery,                               |                                   || in                                        |                                   || the                                       | piece, in strips or in motifs and || (ii)                                      |                                   || fabrics                                   |                                   || jmpr~gnated                              |                                   || coated or                                 |                                   || laminated with preparations of cel-       |                                   || lulose derivatives or of other artificial |                                   || plastic materials                        |                                   || -                                         |                                   || -                                         |                                   || -                                         |                                   || -                                         |                                   || -                                         |                                   |21 woollen fabrics-fi~ per cent  ad  vazorem - (1) woollen fabrics" other thim embroidery in the piece, in strips' or in motifs - - - - 22 man-made fabrics-i· seven and a half per cent ad valorem plus two rupeesp~r square metre (1) man-made fabrics other than (i) embroidery, in the piece, in strips or in motifs, and (ii) fabrics impregnated, coated or laminated with preparaticms of cellulose derivatives or of other artificial plastic materials' - -   billfurther te amend the central excises and salt act, 1"", ed the addi· tional duti of hclje (goods of special imporlanh) act, 1' (sji,ri it vnkclt4,  , jliftwter of '""-") 