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M/s NHH Textile Processors Versus Commissioner of Central Excise And Service Tax, Ahmedabad-I

2015 (10) TMI 1363 - CESTAT AHMEDABAD

Manufacturing activity or not - whether the processes of Chemiking and Spotting undertaken by the Appellant amounts to manufacture under Section 2(f) of the Central Excise Act, 1944 or not - Held that:- Appellant is only undertaking the process of Chemiking and Spotting which is akin to the process of washing and cannot be considered to have brought a new marketable product into existence which is brought and sold in the market - In the case of CCE, Coimbatore Vs K.G Denim Ltd (2005 (7) TMI 650 .....

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dent : Shri Alok Srivastava, AR ORDER Per: H K Thakur: 1. This appeal has been filed by M/s Nhh Textile Processors, Ahmedabad with respect to OIA No.187 to 188/2007, dt.30.04.2007. 2. Shri Uday Joshi, learned Advocate appearing on behalf of the Appellant argued that this is a second round of litigation and in the first round of litigation as per Order No.A/1590/WZB/2000/C-I(EB), dt.07.08.2006,. this matter was remanded back to the Adjudicating Authority with directions to decide whether processe .....

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llant that the process undertaken by the Appellant is only washing which does not amount to manufacture under Section 2(f) of the Central Excise Act, 1944 as no distinct marketable commodity comes into existence. 4. Shri Alok Srivastava, Authorised Representative appearing on behalf of the Revenue argued that activities undertaken by the Appellant and M/s Nhh Textile Processors does not convey that simple washing of the fabrics was done and that Appellants are involved in complete process of Dye .....

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ppeal No.E/1666/2006, following order was passed in the case of appellant while remanding the issue to the adjudicating authority:- "The appellants were undertaking the processing of Spotting, Chemiking and washing if processed fabrics on job work basis which were received from their principal manufacturer under Rule 4(5)(a) of CENVAT Credit Rules, 2002 procedure. Their main contention is that the said process does not amount to manufacture and therefore, no duty liability can be fastened o .....

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e process of the chemiking and spotting were not explained by them to the lower adjudicating authority and these being question of facts, a final view can be taken only when, the process are properly explained, when lower authorities have specifically held them to be manufacturing processes. 2. We accordingly allow the stay petition and remand the matter back to the lower Adjudicating authority with a direction that he should give a clear finding explaining the process of spotting and chemiking .....

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IO dt.07.02.2007:- "8. I find that Note 4 to Chapter 55 of the Central Excise Tariff Act, 1985, specifically stipulates that "in relation to products of Heading Nos.55.11, 55.12, 55.13 and 55.14, bleaching dyeing, printing, shrink-proofing, tentering, heal-setting, crease-resistant processing or any other processes or any one or more of these processes, shall amount to 'manufacture'. I further find that Partner of the noticee has admitted during the course of hearing that they .....

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from the next stage of dyeing. The activity of dyeing consisted of two stages. The first stage was that of washing of the fabrics and the second stage was the dyeing of the washed fabrics. Before the fabrics could be dyed properly, it was necessary to wash the same. In net effect, the noticee undertakes the process of dyeing of the man-made fabrics. In the circumstances, it would not be appropriate to look at the two stages involved in the activity of dyeing of man-made fabrics separately. The .....

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mpared in item No.22(1) of the First Schedule includes bleaching, dyeing, printing, shrink-proofing, tentering, heat-setting, crease resistant processing or any other process of spotting and chemiking of the fabrics does not amount to process of manufacture is of no relevance in tne instant case as the present case is not a case of washing simpliciter out is a case where the respondents are admittedly involved in the complete process of dyeing of man-made fabrics. A similar view has also been gi .....

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which is done by the Appellant before the fabrics could be dyed by the supplier of fabrics M/s M.H. Mills. It was his finding that the two stages of washing and dyeing, involved in the process of processing of the fabrics, cannot be viewed separately. It was, accordingly, held that the processes of Chemiking and Spotting has to be considered as complete process of dyeing of man made fabrics. In this regard, we are of the considered opinion that the processes undertaken by the Appellant have to .....

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s have to be taken together is not legally correct and is required to be rejected. 7. From the facts available on record, it is observed that the Appellant is only undertaking the process of Chemiking and Spotting which is akin to the process of washing and cannot be considered to have brought a new marketable product into existence which is brought and sold in the market. So far as the process of washing amounting to manufacture is concerned, the CESTAT Mumbai in the case of T.D. Bhatia Vs CCE .....

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