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TMI Blog2008 (12) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... irting/suiting/furnishing fabrics and made ups and readymade garments. The appellants imported 100% Polyester fabrics falling under Chapter 55 without payment of duty availing the benefit of exemption notification No.54/07 dated 3.6.97. (b) The appellants have cut the fabrics imported by them into shapes and cleared them as "un-stitched readymade garments" to M/s. G.N. Rubbertech (P) Ltd. Calcutta, another 100% EOU, on the basis of a CT-3 Certificate issued by the jurisdictional Central Excise Authorities to receive such "un-stitched readymade garments". (c) A show cause notice was issued alleging that what was removed by them cannot be called as readymade garments and that the appellants have not fulfilled the condition No 6 of the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as readymade garments, the same should be treated as made-ups and for the said proposition, he relies on the clause 7(a) of Section Notes relating to Section XI dealing with Textile and Textile Articles., according to which, made-ups also means "cut otherwise than into squares or rectangles". (e) Further, as a 100% EOU in terms of Condition 7 of Notification No.53/97, the imported goods could be "cleared to warehouses authorised to carry on manufacturing process or other operations under Section 65 of the Customs Act." In this connection, he also relies on paras 3 and 4 of the Board's Circular No.71/2002-Cus dated 30.10.2002, permitting the transfer/supply of capital goods imported/procured or goods manufactured, produced or package ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made the following submissions:- (a) The LOP granted specifically mentions the goods, which are required to be manufactured and exported by the appellants. The un-stitched fabrics even if cut to required sizes and shapes cannot be treated as readymade garments. In common parlance, nobody shall supply the un-stitched fabrics cut to required sizes and shapes as readymade garments and nobody will purchase the same as readymade garments. The cutting to shape may be one of the processes in the manufacture of the readymade garments but this alone will not lead to manufacture of readymade garments. The HSN Notes will apply to imported goods and the same has only limited application in respect of the goods cleared by a central excise assessee. Mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the jurisdiction of Central Excise, Barasat Division of Kolkata-III Commissionerate. A report in this regard was called for from them, they reported as under:- This is to report that M/s. G.N. Rubber Tech Pvt. Ltd., Kolkata was a fraud party. There was no physical export from their unit. Cases booked against the unit to recover the duty evasion. The letter of permission (L.O.P.) of the unit has been suspended by the Development Commissioner. The unit is closed since 2004." In view of the report of the Kolkata-III Commissionerate, it cannot be ascertained whether the unstitched readymade garments sent to them were stitched and therefore exported as "readymade garments"." 6.1. We have carefully considered the submissions from both s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from a 100% EOU and which are claimed to have been manufactured. The cutting to shape may be one of the processes in the manufacture of the readymade garments but this alone will not lead to manufacture of readymade garments. We agree with the submission of the Ld DR that the HSN Notes can be applied to imported goods and the same has only limited application in respect of the goods cleared by a central excise assessee. 6.4. M/s. G.N. Rubbertech (P) Ltd. Calcutta, 100% EOU, was issued with a CT-3 Certificate by the jurisdictional Central Excise Authorities to receive such "un-stitched readymade garments". We are unable to appreciate as to how such a certificate has been issued by the authorities. The removal by the appellants was on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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