TMI Blog2001 (6) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... fabrics, also do job work; that they received knitted pile fabrics in grey form from M/s. Dhvani Terefebs Exports Pvt. Ltd; that they received grey fabrics in running length of 300 mtrs which is being cut by them into convenient lengths according to the size of their machines and then they undertake the process of washing, dyeing and bleaching, hydro extracation, tumble dyeing and drying; that before 23-7-1996 both grey and processed fabrics were classified by the Department under Heading 60.01 of the Schedule to the Central Excise Tariff Act; that with the grant of exemption to goods falling under Heading 60.01, three show cause notices were received by them for classifying the processed fabrics under Heading 63.07 as other made up textil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n it was held that a hollow tubular fabric cut into required length cannot be said to be cut into square or rectangles. But the fabrics are not articles in the finished state ready for use without sewing or other working. Reliance was also placed on the decision in the case of CCE, Coimbatore v. Terrytex - 1997 (91) E.L.T. 169 (T), wherein it was held that in case sewing is required for making the goods ready for use, the same would stand precluded from the scope of made up articles as set out under Section Note 5(b) to Section XI. Finally the ld. Advocate submitted that it is settled legal position that where a particular expression has been defined in the tariff for the purpose of particular heading or chapter, an item which does not sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to shape so as to attract Note 5(f) to Section XI of the Tariff. The submissions made by him is that they are cutting the fabric received in running length of 300 mtrs into small length according to the size of their machines and not cutting the fabric into towels or giving any shape so as to brand them as made up articles . The narrow small strips was on the fabric even at the grey stage. The Department is classifying the grey fabric under Heading 60.01. In view of this we feel that the applicants have made out a strong prima facie case for waiver of the entire amount of duty and penalty. Accordingly, we waive the requirements of pre-deposit of entire amount of duty and penalty and stay the recovery of the same during the pendency of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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