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2016 (3) TMI 948 - CESTAT MUMBAI

2016 (3) TMI 948 - CESTAT MUMBAI - TMI - Manufacture - whether the process of pleating and embossing does amount to manufacture? - whether the duty cannot be demanded from the job-worker but should be demanded from the supplier of the materials under rule 12B? - Held that:- In view of the clear cut findings and in absence of any evidence to the effect that pleating and embossing results in a permanent change in the fabrics, we are unable to differ with the impugned order concluding that the proc .....

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s. The said processes were exempted under Entry No. 102 Notification No. 6/2002 dated 1.3.2002. Vide Notification No. 6/2003 dated 1.3.2003, the said exemption was withdrawn. However, the said exemption was again extended on 1.10.2003. A notice was issued to respondents alleging that the process of pleating and embossing of fabrics amounts to manufacture. Since the said process was not exempted during the period 1.4.2003 to 1.10.2003, a demand of duty was made on them. The said notice was adjudi .....

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tton Mills - 1989 (39) ELT 498 (SC) held that the process of embossing and pleating is temporary in nature and do not amount to manufacture. He also held that Rule 12B introduced from 1.4.2003, the demand can be invoked on the job-worker only when he exercising the option provided under the proviso to Rule 12B. He arrived at a conclusion that in absence of any evidence, Respondents did not automatically become person liable to pay the duty. He arrived at the conclusion that it is only supplier o .....

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grounds of appeal. He argued that the Board has examined the Hon'ble Supreme Court s order in case of Siddheshwar Cotton Mills, in consultation with Chief Chemist taking into consideration all technical aspects and have come to a conclusion that pleating and embossing on fabrics is not known to disappear on its own i.e. normal period of time of 2-3 years even after ironing or dry cleaning. He stated that the Board had clarified the process of pleating and embossing amounts to manufacture. H .....

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or penal action in non-compliance. 3. Learned Counsel for the respondent argued that Section Note 4 of Chapter 54 does not cover all process with the ambit of manufacture. She argued that only such process which resulted in giving permanent effect to the fabrics can be considered process amounting to manufacture. She also argued that since the product was exempted upto period of 1.3.2003 and was also exempted after 27.10.2003, the same should be considered exempted during the intervening period. .....

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the process of pleating and embossing does amount to manufacture and secondly, the duty cannot be demanded from the job-worker but should be demanded from the supplier of the materials under rule 12B. 4.1 It is seen that the Revenue s appeal covers only the first ground and there is no argument whatsoever in respect of the second ground on which the demand was dropped. There is a blind submission to the effect that duty can be demanded from the job-worker without quoting how and why the argument .....

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orary but a permanent one. Hon'ble Supreme Court in the case of Siddheshwar Cotton Mills has observed as follows: - 8. The preceding words in the statutory provision which, under this particular rule of construction, control and limit the meaning of the subsequent words must represent a genus or a family which admits of a number of species or members. If there is only one species it cannot supply the idea of a genus. In the present case the expressions bleaching, mercerising, dyeing, printin .....

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e exempting notification draws its meaning from that context. The principle of construction considered appropriate by the Tribunal in this case appears to us to be unsupportable in the context in which the expression or any other process has to be understood. 9. It was then contended by Sri Sorabjee that plain-calendering process neither adds anything to the cotton fabric nor the effect brought about by it is lasting. It is, according to learned counsel, nothing more than pressing the cotton fab .....

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e factual aspects and that since the Appellate Tribunal had not specially examined this aspect and recorded its finding thereon, it would be appropriate to remit the matter to the Appellate Tribunal for a fresh disposal of the appeal in the light of the pronouncement of this Court on the proper rule of construction to be applied in the understanding of the expression any other process in Section 2(f)(v) and to consider whether the particular process of calendering adopted by the appellant would .....

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bserved as follows: - 3. In the present case, it is clear from the records that embossing and pleating are temporary in nature. Therefore, the appellants are correct in the contention that the order in their own case covers the issue on merits in their favour, as the processes covered by TI-22(I) (b) of the erstwhile tariff are identical to the processes covered by note 4 of Chapter 54 of the present tariff. We therefore, hold that the duty demand and penalty are not sustainable. 4.4 In case of .....

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