TMI Blog2004 (9) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 22-1-1990 held that the process of embossing on man-made fabrics by the appellants, which is of a temporary nature, does not amount to manufacture under the provisions of Section 2(f)(v) of the Central Excise Act and held that no duty was payable on such process. The ratio of the Supreme Court judgment in Siddeshwari Cotton Mills (P) Ltd. in which, the Supreme Court held that for any other process to fall within meaning "processes" occurring in Section 2(f)(v), process should be one which imparts a change of a lasting character to the fabrics by either addition to the chemical in the fabrics or otherwise, was relied upon by the Tribunal. The Supreme Court held that calendering on cotton fabrics was not a process of manufacture within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other process amounting to manufacture. The Board has earlier examined the dutiability of related fabrics made out of duty paid processed fabric in consultation with the Chief Chemist, CRCL, New Delhi. This opinion of Chief Chemist in which the process of pleating was described in detail was enclosed with letter F. No. 54/6/96-CX. 1, dated 24-4-97 clarifying that pleating of fabric would amount to manufacture. The process of pleating of fabric is done by subjecting the fabric to force, usually length-wise and is accomplished by use of steam pressure/heat setting process. The method and technique by which the pleating is carried out may vary to a considerable extent but the basic condition with respect to time, temperature and press ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t tentering and heat setting are processes, which may not bring lasting changes in man-made fabrics and has been included in the definition of manufacture under Chapter Notes subsequent to the period which was involved in the case of Siddheshwari Cotton Mills decided by the Supreme Court under old Tariff item 19. Even sometimes the processes like dyeing and printing may not last forever, but they are treated as processes amounting to manufacture. In these circumstances, the Board is of the view that there is no conflict with the Supreme Court decision in the case of Siddheshwari Cotton Mills in considering the process of pleating and embossing of fabric amount to manufacture. Now, therefore, for the purpose of ensuring uniformity in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried out by the appellants do not amount to manufacture. Moreover, in the case of M/s. H.M. Bags Manufacturer v. Collector of Central Excise [1997 (94) E.L.T. 3 (S.C.)] the Supreme Court has held that demand based on Board's circular will have effect from the date of its publication. Therefore, even if it is held that the processes carried out by the appellants amount to manufacture demand cannot be sustained in the present case. 5. In the result, we set aside the impugned order and allow the appeal. S.No. Show Cause Notice Date Period Amounts 1 4-11-97 April 1997 May 1997 Rs. 3,94,654.60 2 2-1-98 June 1997 Rs. 4,75,222.20 3 27-2-98 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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