TMI Blog2017 (12) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... 02/17/SMB - Dated:- 14-11-2017 - Shri C J Mathew, Member (Technical) Shri Sachin Chitnies, Advocate for the appellant Shri N N Prabhudesai, Superintendent (AR) for the respondent ORDER Proceedings were initiated against the appellant, M/s Dhanesh Textiles, and the original authority confirmed a demand of ₹ 5,14,748/-, along with interest thereon, and imposed penalty of like amount, under section 11AC of Central Excise Act, 1944 besides disallowing deemed credit amounting to ₹ 1,34,891/-. Vide order-in-original no.SB(26)26/MV/2011 dated 7th March 2011, Commissioner of Central Excise (Appeals), Mumbai Zone I rejected the appeal of M/s Dhanesh Textile Industries Pvt Ltd leading to this appeal. 2. The dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. This was duly affirmed by the first appellate authority. 3. It is the contention of the appellant that on conversion from normal assessment to compounded levy scheme the stock of finished and other goods had been declared and that these had been duly inspected and verified by the authorised officer of the Central Excise Commissionerate. It is also their submission that the definition of 'goods' in rule 7(a) as notified in notification no. 16/2001-CE(NT) dated 30th April 2001 is- (7) Nothing contained in this section shall apply to - (a) the said goods which are manufactured or produced prior to the 1st day of May, 2001 and cleared on or after that date . whereas the goods lying in the finishing room had not unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished goods only. The respondents have failed to produce any evidence to show that the loose quantity reflected in the RG-I Register consisted of grey fabrics which was yet to undergo several processes. The various entries in the RG-I Register could not be reconciled even in the statement submitted by the ld. advocate at the time of hearing. Even otherwise, we are in agreement with the plea taken by the Jt. CDR that in case of textiles, every process undertaken amounts to manufacture as per the chapter notes and therefore, no fabric can be considered as a semi-finished fabric. It is not the respondent's case that the entire quantity shown as loose was all grey fabric only. Once the grey fabric has undergone some processing which amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nu Dyeing Printing Works v. Commissioner of Central Excise [Order dated 16th July, 2008 in Central Excise Appeal No. 104 of 2007,] which set aside the order of the Tribunal on the ground that the Tribunal had taken a different stand while disposing of the appeals pertaining to M/s Paramount Silk Mills Pvt Ltd and Paramount Fabrics Pvt Ltd. 6. While deciding that matter in remand. the Tribunal vide its order no.A/197/1-/EB/C-II dated 24th June 2010 and following the direction of the Hon ble High Court of Bombay gave relief based on the earlier orders in re Paramount Silk Mills that mere entry in RG1 register of goods in the finished room did not render goods marketable. In the present instance too, it is seen that no evidence of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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