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2010 (4) TMI 678 - HC - Central ExciseProcessing of Grey Fabric - by processing such grey fabrics by bleaching, dyeing, printing, finishing, etc. the petitioner unit(s) not only improves the quality of fabric, but also changes the basic characters of a grey fabric to a finished product and by such transformation, a new and different article emerges having a distinctive name, character and use, which is irreversible. - the grey fabrics after undergoing such process is a different commodity with its own price structure, and other commercial incidents and there is in that sense a ‘manufacture’ within the meaning of sub-section (3) of Section 5A of the Textiles Committee Act, 1963. Manufacturer - for the purpose of Textiles Committee (Cess) Rules, which defines ‘manufacturer’, as defined in sub-section (3) of Section 5A of the Textiles Committee Act, for maintenance of registers, submission of month returns and assessment when return is not furnished or furnished incorrectly, the duty paid under the Central Excise & Salt Act, 1944 and the return submitted under the Central Excise Rules, 1944 has been made applicable. Such being the intention of the legislature, we hold that the word ‘manufacturer’ used in sub-section (3) of Section 5A has the same meaning as that is defined in the Central Excises & Salt Act, 1944. Manufacture - exemption under the proviso to sub-section (1) of Section 5A is available to handloom and powerloom industries - petitioners manufacturing finished product and not grey fabrics (raw material) being not handloom or powerloom industries, cannot derive advantage of exemption on the basis of the raw material manufactured by other manufacturers - absence of any merit, no relief granted to the petitioners
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