9911796707
TMI Blog1996 (10) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority. 2. The learned DR pleaded that in terms of S. No. 8 of the table to the notification, made up textile articles produced in the finished stage ready for use (or merely needing separation by cutting dividing threads) falling under chapter heading 6301.00 are exempted from duty if such articles are manufactured on weft pile knitting machine. The issue to be decided is whether the appellants product could be considered as made up textile articles. In this connection, he referred us to Chapter Note 5(b) of Section XI of the Central Excise Tariff which is reproduced below :- Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with threads emerged during the process of manufacture and the same were cut into threads. He pleaded that stitching was done on the two ends before the sale of these towels was only for the purpose of bringing out a value to the towels and had no nexus with bringing into existence of towels which had already emerged on the machine in question by having been manufactured to a desired length connected with other towels through threads. The towels he pleaded emerged by cutting through the connected threads and the requirement of rule 5(b) therefore was clearly satisfied. It would have been a different matter if the towels length connected with threads as such had not emerged during the manufacturing process and that the cloth in length emer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cutting through the dividing threads the respondents item will go out of the purview of note 5(b) to sec. note XI. The reason of sewing of the two ends is that it was done for giving elegance to the item. We are not able to understand how embelishment or elegance can be given to a towel by sewing the two ends. We were shown in the Court the separation of towels from the length by cutting through the dividing threads. It was seen that two ends after cutting through the dividing end did not present a straight ended fringed product. Sewing as we can see has been done to give it a straight ended definite dimension. In Chapter Note 5(b) a stress is on the words `ready for use and this use has to be straightaway linked to the article after cutti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o separate fringed articles. The term `fringe and `fringed as defined in the Chambers dictionary is as under :- fringe: a border of loose threads; hair falling over the brow; a border; anything bordering on or additional to an activity, to adorn with a fringe, to border, bordering or just outside, the recognised or orthodox form, group, etc. as in fringe medicine, fringe banks; less important or popular, as in fringe sports. - fringed; ornamented with fringes. It is seen that what should emerge by cut at the dividing thread in terms of these HSN notes is a separate fringed article and only then it will be classifiable as a made up article. In the present case, the article manufactured by the respondents emerged as a fringed article ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
