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2019 (4) TMI 1844 - AT - Central ExciseProcessing of man made fabrics with the aid of power/steam - entitlement of benefit of exemption Notifications No. 48/90-CE dated 20.03.2019, notification No. 28/94-CE dated 01.03.1994 and notification No. 41/95-CE dated 16.03.1995 - HELD THAT:- The appellant since very beginning has been claiming that the electricity charges were only towards the electricity used by them for fans / exhaust fans. The normal expenditure on electricity for lighting purchased which cannot by any stretch of imagination be equated with the use of power generation for processing of fabrics. Also, there is no specific charge against the appellant that the processes such as washing, dyeing, mercerizing and printing were being carried out by the appellant with the aid of power. Since it has already been established that the majority of fabrics (barring 16 entries) processed by the appellants were of cotton and therefore, use of same in ageing the printed fabrics is legally permissible to the appellant. Also, for the period 1993-1994, 19951996 and even prior to this period, the appellant was engaged in processing of cotton fabrics only. The appellant has maintained proper record of fabrics received, processed and sold in a systemic way where the contents and nature of fabrics is categorically mentioned. We are surprised that the Department did not take note of the fact that most of the fabrics processed by the appellant have mention of cotton fabric. There are no evidences to substitute the charge that the appellants were mainly engaged in the processing of man made fabrics where only 16 entries of man made fabrics processed by the appellant is available out of 559 entries. The appellants have not violated any of the condition of exemption notification. Also, there is no misdeclaration as register of “goods received and delivered‟ have specific mention of type of fabrics used in processing of such fabrics - appeal allowed - decided in favor of appellant.
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