TMI Blog2019 (4) TMI 1844X X X X Extracts X X X X X X X X Extracts X X X X ..... st the appellant that the processes such as washing, dyeing, mercerizing and printing were being carried out by the appellant with the aid of power. Since it has already been established that the majority of fabrics (barring 16 entries) processed by the appellants were of cotton and therefore, use of same in ageing the printed fabrics is legally permissible to the appellant. Also, for the period 1993-1994, 19951996 and even prior to this period, the appellant was engaged in processing of cotton fabrics only. The appellant has maintained proper record of fabrics received, processed and sold in a systemic way where the contents and nature of fabrics is categorically mentioned. We are surprised that the Department did not take note of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944. 2. The facts of the matter are that the preventive staff of the department searched the premises of M/s Priya Textiles Ltd, M/s Uma Synthetics Ltd and M/s Manika Processors situated in the same compound at Amritsar on 12.02.1998. At the time of the visit of the officers, the unit in the name of Priya Textiles Ltd was in operation and Uma Synthetics Ltd was not operational at the relevant time. After making necessary investigation, the department found a view that the following violations have been done by the appellants and thereby they have evaded the central excise duty:- (i) It is alleged that in the year 1993-94, Uma Synthetics had processed fabrics on 8 cold tables by using one boiler of capacity between 600-1000 kgs fitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers showing nature, contents of the fabrics, balance sheet, letter to Income Tax authorities, letter to Department of Industries and statements of Shri Neelmani Kemka, director of the appellant conclusively proved that appellant have processed only man made fabrics. The Department has also concluded that the appellant apart from using husk/coal for generation of electricity and for further use of the same for generation of steam have used power/ electricity in processing of fabric and thus, it has been concluded that the appellant has processed man made fabrics with the aid of power/steam and, therefore, they are not entitled for benefit of exemption Notifications No. 48/90-CE dated 20.03.2019, notification No. 28/94-CE dated 01.03.1994 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of page No. 4 is reproduced below: 6. We find that the Department has heavily relied upon certain entries in column No.9 where the nature of fabrics is mentioned as polyester. However, it has failed to take note of the fact that in other entries under the same column, the nature of fabrics is mentioned as cotton fabrics mentioning the same as C/F (can be seen with preceding page). The learned advocate has mentioned that there are only 16 entries in total in the register which have the details of receipt and delivered goods where the nature of goods has been mentioned as man made fabrics. In rest of the entries, which are in total about 559, only cotton fabrics has been mentioned and same has been processed by the appellant. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the appellant since very beginning has been claiming that the electricity charges were only towards the electricity used by them for fans / exhaust fans. The normal expenditure on electricity for lighting purchased which cannot by any stretch of imagination be equated with the use of power generation for processing of fabrics. We also find that there is no specific charge against the appellant that the processes such as washing, dyeing, mercerizing and printing were being carried out by the appellant with the aid of power. We accept the contentions made by the learned advocate that the steam generated by the appellant with the aid of boiler was used for the purpose of ageing of printed fabrics and as per the condition of exemption no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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