TMI BlogWhether the processes of washing, stentering, calendaring etc. and thereafter chemical padding and special finishing of fabric amounting to manufacture subject to Excise Duty?X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the processes of washing, stentering, calendaring etc. and thereafter chemical padding and special finishing of fabric amounting to manufacture subject to Excise Duty? - Commentaries / Editorials Dated:- 10-9-2008 - News - In a very important and having far reaching effects, CESTAT held that "by applying starch with some chemicals and the special process identified, the fabrics acquire th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e quality of stiffness and sheets which vanishes after a couple of washes. Such a process which does not bring into existence goods with a new name." And therefore, the impugned activity is not amounting to manufacture. Further, the above processes are not subject to deemed manufacture as defined in Note No. 3 of the Chapter 52, of First Schedule of Central Excise Tariff Act, 1985 CES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT on the issue of inclusion of the term "any other process", held that "The expression 'any other process' is used in the context of what constitutes manufacture in its extended meaning and the expression 'unprocessed' in the exempting notification draws its meaning from that context. As per the ratio of the above judgment, any activity such as padding with starch and chemicals, and special fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nishing are not processes of manufacture. Therefore subjecting cotton polyester dyed lungi fabrics to padding and the special processes, we find, do not constitute manufacture." (For full text of judgment - visit 2008 -TMI - 30621 - CESTAT, CHENNAI ) - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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