1996 (7) TMI 338 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 251/82 for exemption eligibility of controlled shirting with 48% polyester and 52% cotton blend.

The judgment revolves around the interpretation of Notification No. 251/82 regarding the eligibility of controlled shirting with a blend of 48% polyester and 52% cotton for exemption. The appellants contested the decision of the Collector (Appeals) that this blend was not covered under the notification. The appellants argued that the definition of controlled shirting included fabrics manufactured with specific blend percentages, as per the Textile Commissioner's notifications. The appellants relied on an amending notification dated 24th April, 1984, which included the blend of 48% polyester and 52% cotton in the definition of controlled shirting. They contended that since this amendment was effective retrospectively from 14th November, 1983, their case was covered by the amended notification, thus entitling them to the exemption.

The Department, represented by the learned DR, argued that the controlled shirting manufactured by the appellants did not meet the requirement of containing at least 75% cotton by weight, as per the definition in the notifications. The DR also contended that the amending notification of 25th April, 1984, could not have retrospective effect, as Central Excise Notifications are generally effective prospectively. Therefore, the DR prayed for upholding the Collector's decision.

After hearing both sides, the Tribunal noted that the controlled shirting in question had a blend of 48% polyester and 52% cotton, which was not eligible for the exemption under Notification No. 251/82. The Tribunal analyzed the provisions of the Central Excise Notification and the Textile Commissioner's notifications to determine the eligibility criteria for controlled shirting. The Tribunal highlighted that the amending notification of 25th April, 1984, included the specific blend percentage in the definition of controlled shirting, but clarified that the retrospective effect was only for certain aspects and not the entire notification. Therefore, the Tribunal concluded that the amending notification would be effective only from 25th April, 1984, and not from 14th November, 1983. Consequently, the Tribunal upheld the Collector's decision, rejecting the appeal.

In conclusion, the judgment delves into the interpretation of statutory notifications and the retrospective applicability of amendments. It clarifies the eligibility criteria for exemption under Notification No. 251/82 concerning controlled shirting with a specific blend percentage, ultimately upholding the decision based on the effective date of the amending notification.