TMI Blog2016 (3) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... long lasting effect and does not amount to transformation of the fabrics. It is more in the nature of enhancing the attributes or attractiveness of the fabrics. The effect also gets washed away by 3-4 simple washes. Under these circumstances, we can not find any fault with the Appellants having a bonafide belief that during the relevant period the process did not amount to manufacture and that they are not liable to Central Excise duty. It is also observed that the Department noticed the alleged duty evasion in January 2001, yet they issued the Show Cause Notice only on 01.04.2005, after almost 4= years. It is also noticed that the South Gujarat Due Drop Processors Association had also taken up the matter with the Ministry of Finance and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs where special adhesive is applied on the dyed fabrics. The fabric is passed through dryer to fix the paste. The fabric is then passed through a machine where metal foil gets stamped on the adhesive already applied. The resultant fabric emerge as fancy printed fabrics with design as if shining dew has got deposited. 2.3 Central Excise Officers conducted checks at the manufacturing premises of the Appellant firm on 06.01.2001 and seized certain raw materials on finding that the Appellants were engaged in the manufacture and clearance of drew drop fabrics without a Central Excise Registration and without payment of duty. Certain records were also seized under Panchnama dt.06.01.2001. 2.4 Statements of Shri Patel, Partner were recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same reason. Personal penalty of ₹ 1,00,000/- is imposed on the partner. Personal penalty of ₹ 5000/- is imposed on each of the 18 merchants. 3. On appeal filed by the Appellants, the Commissioner (Appeals), vide impugned Order-in-Appeal, upheld the Order-in-Original except for dropping of personal penalty on Shri Babubhai Raghavbhai Patel, Partner of the Appellant firm. 4. Heard both sides. The learned Counsel for the appellants submits that the process of Dew Drop was introduced in the country in August 2000 from Korea and a few small scale entrepreneurs in Surat started the process of Dew Drop on duty paid Dyed and Printed fabrics which they obtained from outside, on job work basis. He submits that these entrepreneur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be invoked when the Appellants have a bonafide belief that they are not liable to Central Excise duty. He also drew the attention of the Bench to the decision of the Tribunal in the case of Siddeshwari Cotton Mills Ltd Another Vs CCE Calcutta 1984 (18) ELT 297 (Tri-Kol), wherein the Tribunal held that calendering of textile fabrics will not amount to manufacture and the wordings of sub-clause (v) of Section 2(f) of the Act wherein it is mentioned that Bleaching, Mercerising, Dyeing, Printing, Water proofing, Reliberising, Shrink-proofing, Organdic processing or any other process would amount to manufacture means that any other process should fall under the same genus to attract the principle of Ejusdem Generis. The learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd on perusal of the records, we find that the Dew Drop Process was brought into the country in August 2000 from Korea. We have gone through the write-up on the process of Dew Drop as well as the Certificate submitted by the Appellant in Appeal Memorandum which is from Dr.R.S. Gandhi, Textile Technologist and ex-Director (Mantra) (Man-made Textile Research Association), Surat. We find that the process does not have a long lasting effect and does not amount to transformation of the fabrics. It is more in the nature of enhancing the attributes or attractiveness of the fabrics. The effect also gets washed away by 3-4 simple washes. 8. Under these circumstances, we can not find any fault with the Appellants having a bonafide belief that dur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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