GST Update

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Supreme Court IN THE CASE OF  The Assessing Officer, Textiles Committee v. M/s. Premium Suiting Pvt. Ltd. & Anr.

Supreme CourtTextile Cess Exemption Upheld for Job-Work Processing

Citation: TS-904-SC-2026-GST | 2026 INSC 1158.

Date & case number: 26 October 2026 | Civil Appeal No. 785 of 2016.

Company’s activity: Bleaching, dyeing and processing fabrics supplied by handloom and powerloom units on a job-work basis.

 Dispute: Whether these activities attracted textile cess under Section 5A of the Textiles Committee Act, 1963.

Statutory exemption: The proviso to Section 5A exempts textiles manufactured by handloom or powerloom industries.

Court’s reasoning: The processing undertaken by the company was supplementary to textile manufacturing and did not itself constitute manufacture under this Act.

Interpretation principle: The definition of “manufacture” in the Central Excise Act could not be imported into the Textiles Committee Act.

Relief upheld in favour of M/s. Premium Suiting Pvt. Ltd.

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CA. Praveen Sharma

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