1994 (10) TMI 137 - AT - Central Excise

Summary

Issues Involved:
1. Entitlement to exemption under Notification No. 130/82 as amended by Notification No. 194/82.
2. Compliance with the maximum daily clearance limit of 15,000 sq. meters.
3. Use of 'kier' machines for bleaching operations.

Issue-wise Detailed Analysis:

1. Entitlement to Exemption under Notification No. 130/82 as Amended by Notification No. 194/82:
The appellants contended they were eligible for exemption under Notification No. 130/82, dated 20-4-1982, as amended by Notification No. 194/82, dated 18-6-1982. They argued their annual clearances of processed cotton fabrics during 1981-82 did not exceed the enhanced limit of 36 lakh sq. meters. However, the Additional Collector found that the appellants were not entitled to the exemption because they used 'kier' machines for bleaching, which disqualified them under the proviso and Explanation of the amended notification. The Tribunal upheld this finding, noting the appellants' admission that the large vessels used for boiling water and cloth were locally known as 'kiers'.

2. Compliance with the Maximum Daily Clearance Limit of 15,000 sq. meters:
The appellants argued they cleared only 8,384.21 sq. meters of bleached cotton fabrics and 12,576.33 sq. meters of dyed fabrics on 25-12-1982, thus not exceeding the 15,000 sq. meter limit. However, the Additional Collector and the Tribunal both found that the total clearances on that day included 17,925 sq. meters of bleached cotton fabrics, as admitted by a partner of the firm in a statement dated 6-2-1983. The Tribunal concluded that the appellants' claim regarding the quantity of dyed versus bleached fabrics was unsupported by evidence, affirming the finding that the 15,000 sq. meter limit was exceeded.

3. Use of 'Kier' Machines for Bleaching Operations:
The appellants contended that their bleaching operations involved large vessels, not sophisticated 'kier' machines, and submitted a note from a research associate to support this claim. However, the Tribunal did not accept this note as it was filed as additional evidence without a proper application. The Tribunal agreed with the Additional Collector's finding that the vessels used by the appellants were known as 'kiers', thus falling under the definition of bleaching with the aid of machines as per the notification's Explanation. Consequently, the appellants were not eligible for the exemption.

Conclusion:
The Tribunal found no merit in the appellants' submissions and upheld the Additional Collector's order, rejecting the appeal. The key findings were that the appellants exceeded the daily clearance limit of 15,000 sq. meters and used 'kier' machines for bleaching, disqualifying them from the claimed exemption under the relevant notifications.