9911796707
TMI Blog2006 (7) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... . In one stream, these were stitched at all the four sides, and, in the other, only two sides were stitched and the remaining two sides were left with loose threads. The goods received by the appellants in the second stream were sent to job workers who returned the towels and bed sheets with knots and no loose threads. These towels and bed sheets as well as the towels and bed sheets of the former stream were folded, affixed with brandname, packed and sold by the appellants. Learned Commissioner took the view that the towels and bed sheets so marketed by the appellants were manufactured by themselves through job workers and accordingly demanded duty from them for the above period. In doing so, learned Commissioner clubbed the clearances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d notifications had no application to the appellants. Ownership of the goods was immaterial to exigibility to duty of excise. As the subject goods were undisputedly falling under Chapter 63 of the CETA Schedule and as there was no deeming provision in that Chapter during the material period, none of the aforesaid activities of the appellants was a process of 'manufacture' for purposes of Section 2(f), and therefore learned Commissioner's finding that the appellants undertook the 'manufacture' of towels and bed sheets cannot stand the test of law. Finally learned Counsel submits that, on a similar set of facts, a similar demand of duty on another party was vacated by learned Commissioner (Appeals), Salem in Orders-in-Appeal Nos. 82 and 83/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded by learned Commissioner are also based on apparently erroneous observations. The assessee seem to have a good case on the strength of the Hon'ble Supreme Court's landmark judgments in the case of Ujagar Prints. In the Order-in-Appeal cited by learned Counsel, the appellate Commissioner has apparently taken a correct view on the facts similar to the facts of the present case. Nobody has told us that the operation of the appellate order cited by learned Counsel has been stayed by this Tribunal or by any court. In the circumstances, we think we must grant waiver of pre-deposit and stay of recovery in respect of the duty and penalty amounts. It is ordered accordingly.
(Dictated and pronounced in open Court) X X X X Extracts X X X X X X X X Extracts X X X X
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