| Case ID |
22d4582b-e1b5-4e08-9099-0705cce8cff4 |
| Body |
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| Case Number |
Writ Petition No. 471 of 1956 |
| Decision Date |
Mar 26, 1957 |
| Hearing Date |
Jan 30, 1957 |
| Decision |
The Lahore High Court accepted the petition, ruling that the calendering of cloth does not constitute 'production' or 'manufacture' as defined under the Central Excises and Salt Act, 1944. The court determined that the process of calendering merely enhances the appearance of the cloth without altering its fundamental nature or contents. Therefore, the demand for the petitioner to obtain a license under Rule 174(1)(c) of the Central Excise Rules was deemed illegal. The ruling emphasized the necessity for strict interpretation of taxing statutes to prevent unjustified taxation. The petitioner was awarded costs from the respondent. |
| Summary |
In the landmark case of Ch. Faqir Muhammad vs. Superintendent of Central Excise Lyallpur, the Lahore High Court addressed significant issues surrounding the definition of manufacturing under the Central Excises and Salt Act, 1944. The case arose when Faqir Muhammad, the owner of Aftab Calendering and Finishing Mills, challenged the requirement imposed by the Central Excise authorities to obtain a license for his calendering business. The court examined whether calendering cloth could be classified as production or manufacture, ultimately ruling that it did not meet the criteria set out in the relevant statutes. This decision underscores the importance of precise legal definitions and the implications for businesses in the textile industry. The ruling not only clarified the legal landscape regarding excisable goods but also reinforced the principle of strict construction in tax law, ensuring that businesses are not subjected to undue regulatory burdens. Keywords such as 'Central Excise', 'manufacturing definition', and 'tax law interpretation' are crucial for understanding the impact of this case. |
| Court |
Lahore High Court
|
| Entities Involved |
Aftab Calendering and Finishing Mills, Samundari Road, Lyallpur
|
| Judges |
S. A. RAHMAN, C.J.,
SHABIR AHMAD, J
|
| Lawyers |
M. B. Zaman, Advocate,
Sh. Bashir Ahmad, Advocate
|
| Petitioners |
Ch. FAQIR MUHAMMAD
|
| Respondents |
SUPERINTENDENT OF CENTRAL EXCISE LYALLPUR
|
| Citations |
1957 SLD 48,
1957 PLD 409
|
| Other Citations |
Not available
|
| Laws Involved |
Central Excise and Salt Act, (I of 1944),
Central Excise Rules, 1944
|
| Sections |
6,
2(f),
174(1)(c)
|