Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 583 - AT - Central ExciseSpecial procedure to be applied to the Independent Textile Processors. - Limit to the Investment of 3 crores - Eligibility for Benefit - Benefit of Payment of Duty - Appellants were engaged in the manufacture of Cotton Fabrics, Man Made Fabrics, Terry Towel, Terry Fabrics, etc. - Held that:- The interpretation of the Notification and Rules were correct and cannot be faulted that - the appellants had not been able to make out a case that they were eligible for the benefit based on annual production capacity in terms of Rule and Notification - The appellants did not have the heat setting and drying in the absence of chamber in the hot-air stenter installed by them and therefore they did not have the facility of heat setting and hence they were not eligible - The Circular supported the arguments that the production capacity and determination of duty in the Notification had been made on the basis of chambers in the hot air stenter and therefore the manufacturer who was having an open air stenter without chamber cannot be extended the benefit of the Notification - The Circular also clearly shows why the Government did not think it fit to issue a Notification fixing any production capacity in the case of an open air stenter - This would also show that if a manufacturer had an open air-stenter in addition to hot-air stenter the capacity of production of textile fabrics would definitely increase. The whole purpose of the explanations was to clear any doubts that for heat setting and drying one should exclusively use hot-air stenter only and though one may have open air stenters installed in the process house they cannot be used for heat setting or drying but may be used for other process - Explanations to the rules and the notifications cannot be read in isolation of its purpose - Rule 96ZNA(1) wherein an independent processor of textile fabrics, who was engaged exclusively in the manufacture or production of processed textile fabrics “with the aid of a hot-air stenter”, was eligible for the benefit under the scheme - The reference to “independent textile processor” according to him refers to a processor who was engaged exclusively in the production of fabrics with the aid of hot-air stenter and no one else - The order rejecting the application for availing the facilities for payment of duty under Rule 96ZNA of Central Excise Rules, 1944 was upheld – Decided against Assesses.
|