2011 (5) TMI 383

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..... E Tarpaulin falling under Chapter Heading 39.26 and have cleared the same without payment of duty during the period relevant for the purpose of present appeal. In addition, seized goods also stand confiscated with an option to the appellant to redeem the same and additional penalty of Rs.16,080/- (Rupees Sixteen thousands and eighty only) stand imposed upon the appellant in terms of Rule 25 of Central Excise Rules, 2002 read with Section 11AC.   2. Though, the appellants have raised number of pleas before the adjudicating authority as also vide their appeal memo, we find that the appeal can be disposed off on the prime and basic issue of manufacture.   3. The activities done by the appellant as detailed in their reply to the not .....

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..... l against is pending before Hon'ble Supreme Court.   5. We find no favour with the above observations made by the adjudicating authority. Merely because an appeal stand filed by the Revenue against the order of the Tribunal and stand admitted by Hon'ble Supreme Court, by itself cannot be made the reason for holding the Tribunal s order as redundant, in the absence of any stay of operation of the said order. We further note that Commissioner(Appeals), while rejecting the appeal, has observed that The appellant s argument that onus to establish the manufacture is on the department is not correct as the case has been booked against the appellant only after deciding the issue whether the product is amounting to manufacture or not inasmuch .....

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..... n made-ups. The process of stitching and fixing eyelets would not amount to manufacturing process, since tarpaulin after stitching and eyeleting continues to be only cotton fabrics. The purpose of fixing eyelets is not to change the fabrics. Therefore, even if there is value addition the same is minimum. To attract duty there should be a manufacture to result in different Goods and the Goods sought to be subject to duty should be known in the market as such.   8. As is seen from the above, the process being considered by Hon'ble Supreme Court is identical to the process adopted by the appellant in present proceeding. It stands concluded by Hon'ble Apex Court that the process of stitching and fixing eyelets in the tarpaulin sheets woul .....

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