TMI Blog1987 (10) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Tariff Schedule (CET, for short). The department s case is that the appellants are manufacturing grey cotton fabrics which are then subjected to the finishing process known as cropping which makes the product classifiable under Item No. 191(b). Alleging, on the above basis, that the appellants had failed to declare the said fact of manufacture and thereby contravened the provisions of Central Excise Rules 49A, 173B and 173G, the Assistant Collector passed two orders, after holding adjudication proceedings, demanding differential interest at the rate of 1.5% besides differential duty. 3. The appellants contention, however, is that cropping is not a process incidental or ancillary to the completion of the manufactured product w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification. The process of cropping or butta cutting was one of the specified finishing processes and there was no condition stipulated against the same. By Notification No. 292/79, dated 24-11-1979, the following proviso was added to the Notification No. 80/76 : Provided that no such exemption shall apply - (i) if unprocessed cotton fabrics falling under sub-item 1(a) of the said Item No. 19 on which the duty of excise is leviable either in whole or in part, are subjected to any process or processes specified in the said Table, within the factory in which the said unprocessed fabrics have been produced; or (ii) if cotton fabrics falling under sub-item of the said Item No. 19 are subjected to any process or processes specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question is, whether the unprocessed fabric in the present case is to be considered as a processed fabric after it is subjected to the finishing process of cropping. 9. For the purpose of the present appeal, it appears to us to be unnecessary to discuss the above issue at length and record a finding thereon. This is because sub-clause (i) of the proviso inserted in Notification No. 80/76 by amending Notification No. 292/79 specifically provides that if unprocessed cotton fabrics (there is no dispute that the goods with which the appellants commenced their activity was unprocessed fabrics) on which excise duty was leviable either in whole or in part, are subjected to any process or processes specified in the table to the notification with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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