Central Excise - MMF - Dutiability when subjected to certain processes namely "Tapela Dyeing" - Clarification regarding - Central Excise - 12/87

Central Excise - MMF - Dutiability when subjected to certain processes namely "Tapela Dyeing" - Clarification regarding Circular No. 12/87 Dated 1-9-1987 [From F. No. 55/2/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - MMF - Dutiability when subjected to certain processes namely "Tapela Dyeing" - Clarification regarding. Doubts have been raised as to whether man-made fabrics falling under Chapter 54 or 55 of the Schedule to the Central Excise Tariff Act, 1985 are exempt from Additional Duties of Excise (Goods of Special Importance) Act, 1957 in terms of Notification No. 297/79-C.E., dated 24-7-1979 as amended, in respect of which the process of Tapela Dyeing is carried on in the same premises in which calendering process is carried out. 2. In the Tapela Dyeing process, there is a Bhatti fitted with burner. The diesel oil is supplied through pipe. It is blown with the help of air supplied through the fan fitted with electric motor. 3. A plain reading of the proviso of the notification No. 297/79-CE indicates that exemption from additional duties of excise to man-made fabrics falling under chapter 54 or 55 of the CET is not available if these fabrics are subjected to any process or processes other than those specified in the table annexed to the said notification within the same factory in which they have been subjected to any specified processes. Since Tapela Dyeing process is not specified in the table annexed to said notification and since this process is carried on in the same premises in which calendering process is carried out, the Board is of the view that such man-made fabrics are not entitled to the benefit of notification No. 297/79-C.E., dated 24-11-1979 as amended. The question as to whether Tapela Dyeing process is carried on with or without the aid of power is not relevant since the proviso to said notification does not refer to use or non-use of power in the process, other than those specified in the notification. 4. Further, since the Tapela Dyeing process as described above amounts to use power, the appropriate duty would be chargeable accordingly.