TMI Blog2015 (8) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... se inasmuch as no new item came into existence. It is only when after taking the delivery of these job work done by the respondent that M/s. Dhvani Terefab Export Pvt. Ltd. sent the goods to another processor who undertook the remaining process of knitted pile fabric at his end by cutting, sewing and hamming, that the product of towel came into existence. - though the reasoning given by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For this purpose they have been receiving knitted pile fabrics in grey form from M/s. Dhvani Terefab Exports Pvt. Ltd. in running length of 300 metres. The job undertaken by the assessee on the said fabric is that of washing, dyeing and bleaching, hydro-extraction, tumble dyeing and drying. After doing the aforesaid job work, the fabric is handed over back to M/s. Dhvani Terefab Exports Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. A perusal of the show cause notice would indicate that the Assistant Commissioner had referred to Section Note 5(f) of Section XI of the Central Excise Tariff Act which reads as under Knitted or crouched to shape, whether presented as separate items or in the form of a number of items in the length . 4. The defence set up by the assessee was that it would not fall under the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals) upheld this order of the Assistant Commissioner. 6. The Tribunal has, by the impugned order, set aside the demand on the ground that though the show cause notice invoked the provision of Section Note 5(f) of Section XI of the Act but ultimately Commissioner (Appeals) upheld the order by invoking the provision of Chapter Note 5(b) of Section XI of the said Act. In this manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd by cutting, sewing and hamming, that the product of towel came into existence. 8. Therefore, though the reasoning given by the Tribunal appears to be faulty, for the aforesaid reason we are of the view that in any case demand by the Assistant Commissioner was also erroneous and the only conclusion would be to set aside the same. 9. We, thus, uphold the order of the Tribunal though on diff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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