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TMI Blog1998 (1) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant. Shri S.N. Ghosh, JDR, for the Respondent. [Order per : Archana Wadhwa, Member (T)]. - The appellants are engaged in the manufacture of flocked fabrics which fall under the subheading 56.06 of the Central Excise Tariff Act, 1985. 2. In the manufacture of such flocked fabrics, the appellants used `flocks' which they were manufacturing in their own factory during the relevant perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants, flocks are completely manufactured and attain the distinct name, identity and character as soon as they are cut to microsize fragments not exceeding 5 mm. The Department's contention is that the flocks are not ready-to-use condition unless all the subsequent processes referred to above are completed and the same are stored in the air-conditioning room in the appellants' factory. 4. Ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent processes are preparatory processes in the manufacture of flocked fabrics and as such, do not have any bearing upon the fact of manufacture of flocks. Accordingly, Shri Bhattacharjee submitted that the RG 1 stage for the flocks should be fixed at the point of cutting. 5. Countering the arguments, Shri S.N. Ghosh, learned JDR submitted that the processes of washing, dyeing, drying, sizin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 622 (CEGAT)], we had held that the process of washing, drying, dyeing, sizing, sorting and moisturisation of bought-out flocks, does not amount to manufacture, inasmuch as no new and different product comes into existence. In that case, the appellants were purchasing the already-cut-flocks from the open market. This fact establishes that the flocks attained their marketable stage prior to all th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e processes carried out by the appellants do not amount to manufacture, is thus contradictory. If all these processes do not amount to a manufacture, then the irresistible conclusion is that flocks are completed at the cut-stage. Accordingly, we hold that RG 1 stage for the "flocks" is the point at which they are cut into lengths not exceeding 5 mm. The appeal is thus allowed by setting aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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