Meaning of expression "manufacture of fabric" in Notification No. 35/96-C.E., dated 16-3-1995 - Central Excise - 198/32/96-CX

Meaning of expression "manufacture of fabric" in Notification No. 35/96-C.E., dated 16-3-1995 . Circular No. 198/32/96-CX Dated 19-4-1996 [From F. No. 55/7/95-CX.1] Government of India Ministry of Finance (Central Board of Excise Customs) Subject: Meaning of expression "manufacture of fabric" in Notification No. 35/96-C.E., dated 16-3-1995 . It has been brought to the notice of the Board that some commissionerates are not allowing exemption to double or multiple-fold yarn, if used in the manufacture of embroidered fabrics in terms of Sl. No. 1 of Notification No. 35/95, dated 16-3-1995 on the ground that such embroidery yarn is not being used in 'the manufacture of fabrics'. The matter has been examined by the Board. The expression "manufacture of fabrics" as used at Sl.No. 1 in Notification No. 35/95 needs to be distinguished from "weaving of fabrics". A wider meaning of the expression "manufacture of fabrics" will include, in addition to weaving, the processes like knitting, crocheting, embroidering etc., also. Even after embroidery, the nature of fabrics does not change. Embroidered fabrics are also subsequently subjected to the process of bleaching, dying etc. As such, yarn used for embroidery cannot be said to have not been used in the manufacture of fabrics. In this view of the matter, it is hereby clarified that use of said yarn for embroidery of fabrics will be covered by the expression "manufacture of fabrics" for the purposes of Notification No. 35/95, dated 16-3-1995.