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282 EXCISE LAW TIMES [ Vol. 372

soap’ no process carried out with aid of power or steam for heating - HELD :
Expression, ‘power’ neither defined in Tariff Act or in Notifications or Act -
Definition of ‘power’ in Factories Act, 1948 cannot be taken aid of to determine
meaning of expression ‘power’ under Tariff Act or Exemption Notification as
purpose of defining ‘power’ under Factories Act, 1948 entirely different and
Finance Act, 1948 does not deal with cognate subjects - Meaning of expression
‘power’ as contained in dictionaries also not to be blindly applied - In common
parlance, ‘power’ understood as ‘electricity’ - Object behind granting exemp-
tion from payment of Excise duty to manufacture of soaps in cases wherein or
in relation to manufacture of soap no process carried out with aid of power is
to discourage manufacturers from using electricity in manufacture of soap -
Hindi version of Tariff Act and Exemption Notification use word ‘vidyut’, and
word ‘vidyut’ means ‘electricity’ - ‘Power’ as used in English version of notifi-
cation ought to be understood to mean ‘electricity’ alone - Also, Commissioner
not justified in ignoring meaning assigned to expression ‘power’ under Circu-
lars dated 22-3-1968 and 25-3-1968 merely because same withdrawn - Nothing
in present Tariff Act to justify assigning any other meaning to expression
‘power’ from that which was assigned in aforesaid two Circulars - Manufac-
ture of ‘soap’, therefore, to be subjected to ‘NIL’ rate of duty because of exemp-
tion Notification No. 3/2005-C.E. - Demand unsustainable - Imposition of pen-
alty on Factory Manager, Authorized Signatory and Managing Director also
not sustainable - Demand set aside. - Under the Second Circular issued in relation
to confectionery, it has also been clarified by the Board that if ‘gas’ is used for heating
purpose in or in relation to the manufacture of which any process is ordinarily carried on
with the aid of power, it would not be treated as use of ‘power’. The words now used in
the Tariff Act and the Exemption Notification are also ‘in or in relation to the manufac-
ture of which, no process has been carried on with the aid of power’. The meaning of the
expression ‘power’ will, therefore, not change even if fresh Circulars have not been issued
by the Board to clarify the meaning of the expression ‘power’. [paras 29, 30, 31, 32, 33,
34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57]
Interpretation of statutes - Exemption - Attempt needs to be made to
find out meaning which would achieve rather than frustrate the object of
granting exemption and that meaning should be preferred which does not lead
to uncertainty or unintended results. [para 35]
Appeals allowed
CASES CITED
Commissioner of Trade Tax v. Associated Distributors Ltd. — (2008) 7 SCC 409
— Relied on ..................................................................................................................................... [Para 42]
Employees State Insurance Corporation — Order of Karnataka High Court
— Distinguished .......................................................................................................................... [Para 34]
MSCO Pvt. Ltd. v. Union of India — 1985 (19) E.L.T. 15 (S.C.) — Distinguished ....................... [Para 32]
Pappu Sweets and Biscuits v. Commissioner — 2004 (178) E.L.T. 48 (S.C.)
— Relied on .............................................................................................................................. [Paras 36, 42]
Park Leather Industry (P) Ltd. v. State of U.P. — (2001) 3 SCC 135 — Relied on ........................... [Para 42]
DEPARTMENTAL CLARIFICATIONS CITED
C.B.E. & C. Circular, dated 22-3-1968 ...................................................................................... [Paras 18, 24, 45]
C.B.E. & C. Circular, dated 25-3-1968 ...................................................................................... [Paras 18, 45, 47]
C.B.E. & C. Circular, dated 29-3-1968 ................................................................................................... [Para 24]
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