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TMI Blog2018 (7) TMI 1682X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, Blends, Mutilated Rags, Process Waste and Clips falling under Chapter sub-heading various chapters of CETA, 1985. During the relevant period, the imported mixed woollens/synthetic rags falling under Customs Tariff Heading No. 6309.00 and manufactured mutilated rags, clips blends and waste obtained by sorting/mutilating/cutting were cleared to DTA as per the permission granted by the Development Commissioner. Alleging that these goods were not excisable since the process to which the imported mixed woollen/synthetic rags were subjected, did not amount to manufacture and also these goods did not figure in the first schedule to the CETA, 1985. They had wrongly paid the duty on the DTA clearances of mutilated rags in terms of Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find a place in the CETA at 63.10, therefore, demands after 01.03.2005 has been set-aside and for the period prior to 01.03.2005, the matter was remanded to the adjudicating authority to re-examine the issue in the light of various judgements, principles of law settled in this regard. The Ld. Advocate assailing the order of the Adjudicating Authority has submitted that the Ld. Commissioner in the impugned order held that since rags was not mentioned under a specific tariff heading prior to 01.03.2005, therefore, even though the process of judicial of rags resulted into manufacture, but the same cannot be treated as an excisable goods. He has submitted that there was a transition from 6 digit tariff to 8 digit tariff w.e.f. 01.03.2005. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be considered as excisable goods accordingly the benefit of exemption Customs Notification No. 53/2003-Cus dated 31.03.2005 is not applicable. In support, he has referred to the judgement of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Vapi vs. Global Health Care Products - 2015 (322) ELT 365 (S.C.), and the Tribunal in the case of Collector of Central Excise, Ahmedabad vs. Amol Decalite Limited - 1999 (105) ELT 222 (Tribunal). 5. Heard both sides and perused the record. 6. The short question that needs to be answered in the present Appeal is: whether during the period October 2004 to February 2005 the rags are eligible to the benefit of exemption Notification No. 23/2003-CE dated 31.03.2003. In the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ECO Valley Farms & Foods Ltd. Vs. CCE, Pune-III - 2013 (290) ELT 49 (Bom.). We find force in the contention of the Ld. Advocate for the appellant. We find that 'rags' is not a new commodity, but from time to time various exemption notifications (for instance, Notification Nos. 6/88-CE dt. 19.1.1988 and 103/93-CE dt. 27.12.1993) were issued recognizing rag as an excisable commodity. Further, in the judgement of the Bombay High Court in the case of Punjab Business and Supply Co. Pvt Ltd (supra), rag has been considered as a commodity falling under the First schedule to the Central Excise Act, 1944. Besides, the Ld. Commissioner has observed that this Tribunal has dropped the demand for the period after 01.03.2005 observing that rag has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter Heading 07.01 and fresh mushrooms were covered under 07.02 of the Central Excise Tariff. The expression "other edible vegetables" in Chapter Heading 07.02 read with chapter note 1 in Chapter 7 would make it clear that mushrooms other than dried mushrooms viz. fresh mushrooms were covered under Chapter Heading 07.02 of the Central Excise Tariff. Rate of excise duty payable on dried mushrooms under Chapter Heading 07.01 as well as the rate of excise duty on fresh mushrooms under Chapter Heading 07.02 were Nil. 23. In the proceedings initiated in the year 1999, the specific case of the Revenue was that the fresh mushrooms were excisable under Chapter 7 of the 1985 Act. Whether fresh mushrooms were covered under heading 07.01 or 07. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 1985 Act to eight digit entries on par with the entries in the schedule to the Customs Tariff Act and not with a view to bring in new goods within the purview of excise. This was further clarified by issuing Notification No. 1 of 2005-CE., dated 24th February 2005 and Trade Circular No.808/2005, dated 25th February 2005, wherein it is stated that by the 2004 amendment merely a technical change of transition from six digit to eight digit classification is brought about and no substantive change is brought about. The fact that fresh mushrooms classified in the general category under heading 07.02 of the Central Excise Tariff prior to the 2004 amendment have been classified specifically under entry 07095100 in Chapter 7 of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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