TMI Blog1989 (6) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... of calendered cotton fabrics falling under Item No. 19I(b) of the First Schedule ( CET ) to the Central Excises Salt Act during the period from 14-5-1981 to 19-9-1981 without obtaining a Central Excise Licence, without maintaining statutory records, without submission of price list/classification list, without observing Central Excise formalities and without payment of Central Excise duty leviable thereon amounting to Rs. 2,62,767.04. The Collector of Central Excise, Calcutta, in due course, adjudicated the case and directed the appellants to pay the aforesaid sum of duty besides imposing a penalty of Rs. one lakh on them under Rule 173Q of the Central Excise Rules. In appeal, the Central Board of Excise and Customs confirmed the duty dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the fabric by either the addition of some chemical into the fabric or otherwise. Any other process in the section, the Court observed, must share one or more of these incidents. The expression any other process is used in the context of what constitutes manufacture in its extended meaning and the expression unprocessed in the exemption notification (230/77-C.E., dated 15-7-1977 and231/77-C.E., dated 15-7-1977) draws its meaning from that context. It was contended before the Court that the process of plain-calendering neither added anything to the cotton fabric nor was the effect brought about by it lasting. It was nothing more than pressing the cotton fabric by running it between plain rollers to improve its appearance. It was pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation on record as to actual process employed by the appellants. He referred to certain technical authorities ( Encyclopaedia of Textiles , 3rd Edition), by the Editors of American Fabrics and Fashions Magazines and Textiles Fibre to fabric by Corbman on Calendering. In Verma Industrials Ltd., Bangalore v. Collector of Central Excise, Bangalore -1984 (18) E.L.T. 403 (Tribunal), the Tribunal had held katcha dying to be a process of manufacture. In Empire Industries Ltd. Ors. v. Union of India Ors. -1985 (20) E.L.T. 179 and UjagarPrints, etc. etc. v. Union of India Ors. -1988 (38) E.L.T. 535, the Supreme Court had not distinguished between permanent and non-permanent processes. He concluded by submitting that even if the process w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been disproved. In the circumstances, it is reasonable to proceed on the footing that the appellants had plain and not grooved roller calendering machines. As Shri Rangaswamy correctly pointed out, the Department could have, but did not, investigate further into the matter at the material time. We do not think it is necessary to launch on a factual investigation, as the D.R. would have us do, on the aspect at this distant date. 8. In para 9 of the Tribunal s order No. C 151 152/84 dated 16-3-1984, relevant extracts from Modern Textiles by Dorothy S. Lyie (John Wilay Sons, N.York), Chamber s Dictionary of Science Technology , Encyclopaedia Britannica and Textile Terms and Definitions (Manchester Textile Institute) had bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Item No. 19 I(b) of the C.E.T. 9. In Mafatlal Fine Spinning Manufacturing Co. Ltd. v. Collector of Central Excise 1989 (40) E.L.T. 218 (SC), the question arose whether cotton fabrics which underwent the process of calendering and steaming ceased to be grey fabrics or became processed fabrics. Of course, the dispute was in the context of the Central Excise Rules 48A(2) which provided for different rates of interest on the deferred yarn duty depending on whether the fabrics cleared were grey or processed . But, in our view, the principle of the Supreme Court s decision is relevant for our present purpose because the question before the Court was, as in the instant case, whether the process of calendering was any other proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly pointed out by Shri Rangaswamy, the question of temporary or permanent effect imparted to fabrics by the process employed on them was not one before the Court in those cases. Those judgments are, therefore, of no help to the Revenue. Nor is the Tribunal s decision in the case of Venna Industrials Ltd., Bangalore v. Collector of Central Excise, Bangalore 1984 (18) E.L.T. 403 relevant, for, the question there was whether the appellants were liable to pay duty on account of their activity of dyeing cotton fabrics. The appellants had contended that their process was Katcha and not Pucca dyeing and that such dyeing was not fast. The Tribunal rejected this contention in the light of the amendments to Section 2(f) of the Act and the tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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