Textile Committee Cess Invalid as Dyeing Is Not “Manufacture”: P&H HC

Varun Fabs Ltd. Vs Union of India And Ors. (Punjab and Haryana High Court) The Punjab and Haryana High Court decided a batch of writ petitions involving a common issue on the levy of Textile Committee cess on independent dyeing and processing units. The lead petition concerned a private limited company engaged solely in dyeing grey fabric received on a job-work basis. The petitioner did not manufacture grey cloth; after dyeing, the fabric was returned to the owner, who might or might not be the manufacturer. The cess had been demanded under Section 5A of the Textile Committee Act, 1963, pursua...