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2008 (7) TMI 417 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPURWhether in the facts and circumstances of the case the Duty under Section 3A of the Central Excise Act, 1944 read with Rule 96ZQ of the Rules of 1944 was leviable on the duty payable under Stenters Rules at the stage of finishing process? Whether change of law w.e.f. 1st March, 2001 brought change in respect of Duty which became payable and paid until 28th Feb., 2001? Held that:- When the entire processes of stentering was already over, and only thing remaining to be done was, decatising, folding, and packing, that being not the requirement, as a sine qua non, for amounting to "manufacture", it cannot be said, that duty did not stand levied on the said stock of 84407.50 mtrs., or for that matter 54760.95 mtrs. under the Rules of 2000, simply because, decatising, folding, and pressing was yet to be done at the cut off date and time. Thus, the question no. 1 as framed is answered in favour of the assessee, and against the Revenue, and it is held, that the duty, under Section 3A read with Rule 96ZQ of the Rules, stood levied under the Rules of 2000, at the stage, when one or more processes quoted above were completed, and did not stand deferred to await the finishing processes, like decatising, folding or packing. Thus, we do not find the impugned orders to be sustainable at all. So far question no. 2, as framed, is concerned, that, in our view does not arise, as it is nobody's case, that the change of law w.e.f. 1-3-2001, brought any change in respect of duty becoming payable and paid till 28-2-2001. Appeal allowed.
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