TMI Blog2001 (1) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) RLT 220. Short facts necessary for decision in this appeal are as follows. 2.Appellants herein are processors of man-made fabrics with the aid of Hot Air Stenter. They are liable to excise duty on the basis of capacity of production determined in terms of Hot Air Stenter Independent Textile Processors Annual Capacity Determination Rules, 1998 (hereinafter referred to as the Rules) framed in terms of Section 3A of the Central Excise Act, 1944. While deciding the production capacity the Commissioner included the length of galleries also to that of chambers of the stenter. This method resorted to by the Commissioner has been questioned by the appellants. According to them the galleries have no productive use and did not contain any compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the hot air stenter. According to this rule each chamber is to have a rail length of up to 3.05 metres on each side. In other words, where the rail length is upto 3.05 metres, it will constitute one chamber. Any fraction exceeding such rail length of any chamber should be computed on a pro-rata basis. This shows that if the rail length happens to be more than 3.05 metres that excess length will constitute additional chamber having a pro rata length. Explanation I to the rule contemplates installation or attachment of a float drying machine or any other equipment for aiding the process of heat setting or drying of the fabrics. If the length of these equipments, namely, float drying machine or any other equipments is 3.05 metres, as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is that the galleries aid the process of heat setting or drying of fabrics. Galleries are empty chambers. Oil fumes escaping from the chambers are collected in the gallery and are expelled to atmosphere through chimneys with the help of exhaust fans. An argument was advanced by the Learned Departmental Representative that when the fabrics are being dried, humidity inside the chamber increases and consequently that hot air has to be expelled through gallery for maintaining the drying process. This process helps drying the fabrics inside the chambers effectively. Viewed in this light it was contended that the gallery acts as an aid to the process of heat setting in the chamber. This argument though quite attractive cannot be accepted becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng process as well. 7.Rule framed under Section 3A of the Act is for determining the annual capacity of production of the textile fabric where manufacturing process takes place with the help of hot air stenter. Depending on the length of rails used in the stenter the number of chambers is fixed. Capacity of production depends on the number of chambers of stenter. If float drying machine is installed or attached to a stenter that float drying machine will be treated as a chamber of the stenter in view of the Explanation. Any other equipment like float drying machine, if attached, will also be deemed to be a chamber of a stenter. But the equipment so installed or attached should be aiding the process of heat setting or drying of fabrics. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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