Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1268 - AT - Central ExciseManufacture - whether the process of "cropping" carried out by the appellant on the grey fabrics will attract mischief of Chapter Note 3 of Chapter 52 and Chapter Note 4 of Chapter 55 as "any other process" that shall amount to 'manufacture'? Held that: - A closer examination at the indicative list of processes in the chapter notes would lead to the inescapable conclusion that, all those processes when subjected to woven fabrics of cotton/synthetic staple fibres bring about irreversible change in the characteristics of such fabrics and further, all these processes may also require treatment or intervention of chemicals to achieve the desired result - the term "any other process" will necessarily be of the same genre of processes which bring about permanent change in the characteristics of the fabrics. This is the doctrine of Noscitur A Socis, namely, that the meaning of doubtful word can be ascertained by reference to the meaning of words associated with that word - Applying the doctrine of Noscitur a sociis, it is held that "any other process" will necessarily have to be one like bleaching, mercerizing, shrink-proofing etc. resulting in permanent change in the characteristics of the fabrics and mostly involving use of a chemical agent. Per contra, "cropping" involves removal of fibres from surface of the fabrics, by cutting projecting fibres and yarn, the terms "cropping" and "shearing" are very often used interchangeably. The only apparent difference being that in shearing the fibres are cut in an angular manner on the surface of the fabric itself. Both these processes are intended to give a clean and smooth appearance to the fabric and to control pill formation. The cropping or for that matter, shearing processes cannot be considered as being of the same genre as bleaching, mercerizing, dyeing, printing etc. The process of "cropping", which merely involves cutting away mechanically loose ends from the fabric to give a clean and smooth appearance will not fall within the ambit of "or any other process" for the purposes of Chapter Note 3 of Chapter 52 or Chapter Note 4 of Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985 - any conclusion that the impugned cotton / synthetic grey fabrics subjected to "cropping" are "processed" fabrics requiring classification under CETA 5207.39 & 5208.39 (under 5207.29 and 5208.29 till 28-02-2001) and 5511.29, 5512.29 and 5513.29 respectively, is surely a misinterpretation and hence consequential demand of duty made by the adjudicating authority is not supported by law. Appeal allowed - decided in favor of appellant.
|