1998 (4) TMI 287 - AT - Central Excise

Benefit under Notification No. 253/82-C.E. not available. - Words and Phrases - Manufacture

Summary

Issues:
Eligibility of cotton fabrics for exemption under Notification No. 253/82-C.E. based on the process undertaken through the Kier machine.

Analysis:
The appeal filed by the Revenue challenges the Order-in-Appeal passed by the Collector of Central Excise (Appeals), Bombay concerning the eligibility of cotton fabrics for exemption under Notification No. 253/82-C.E. The Asstt. Collector of Central Excise, Kalyan, Bombay initially held that the process undertaken by the assessee was bleaching, not scouring, making it ineligible for the exemption. However, the Collector of Central Excise (Appeals) concluded that the process was scouring, thus making the goods eligible for exemption even when the Kier machine was used.

The Tribunal proceeded with the hearing in the absence of the respondents, M/s. Uma Dyeing & Printing Mills, as it was an old matter dating back to 1982. The Tribunal carefully examined the case and noted that the processes carried out through the Kier machine involved the use of bleaching agents, leading to partial bleaching according to the respondents. However, the Tribunal emphasized that the use of bleaching agents in the Kier machine rendered the process a dutiable bleaching process, not covered by the exemption under Notification No. 253/82-C.E.

The Tribunal distinguished between the processes of scouring and bleaching, highlighting that scouring involves washing with hot water, soap, or alkali solutions, while bleaching in the Kier machine utilizes steam and pressure with the addition of bleaching agents. Referring to a previous case, the Tribunal emphasized that scouring does not result in a new commodity and that the use of bleaching agents in the Kier machine constitutes a dutiable process, not exempted under the notification.

Considering all relevant factors, the Tribunal disagreed with the Collector of Central Excise (Appeals) and set aside their decision, reinstating the Order-in-Original. Consequently, the appeal by the Revenue was allowed, determining that the processes undertaken through the Kier machine with bleaching agents did not qualify for exemption under Notification No. 253/82-C.E.