TMI Blog1998 (1) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... der per : P.C. Jain, Member (T)]. Briefly stated the facts of the case are as follows : The respondents herein are engaged in the process of cotton fabrics and man-made fabrics. They receive terry towelling cloth from their sister concern M/s. Mysore Spinning Mfg. Mills (same name as of the respondents herein) and they are subjected to processing of bleaching, dyeing and stitching. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity did not accept the claim of the respondents for exemption and approved the classification list by holding the respondents liable to pay duty on the terry towels at 12% ad valorem. 2. On appeal before the lower authority, the respondents herein succeeded. The reason is given as below :- I have carefully considered the grounds of appeal and the oral submission made during personal hearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qualify for exemption under Notification 65/87, dated 1-3-1987. However, the subject goods are liable to discharge duty as terry towelling cloth, when they are finally cleared by the parent manufacturer. I therefore set aside the impugned order and allow the appeal. 3. Hence, this appeal by the Revenue. 4. The ld. SDR, Shri Victor Thiagaraj for the Revenue submits that it is not disputed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notification has been rightly granted by the lower authority. The use of power, he submits, has been done only in processing of terry towelling cloth and not in manufacturing mere terry towels. But in manufacturing made-up articles of textile i.e. terry towels, no use of power has been done. Therefore, the benefit of Notification 65/87 should be made available to the respondents as has been rig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
