9911796707
TMI Blog1998 (6) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had suppressed any facts to justify the application of the extended period of limitation. The Revenue had pleaded that with regard to the variety `Jagat Guru no price list was filed and in the classification list the goods were just described as fabrics (unbleached). The goods were woven with a demarcation at a regular interval of 2.5 meters along the length of the fabric; they were stamped as `chaddars and after cutting the individual piece at the demarcated line, it was not necessary for their use that the edges were to be hemmed. After cutting at the demarcated line, the chaddars were usable as such. It had been pleaded by the Revenue that the `Jagat Guru variety of Chaddar was a `made up textile article for classification under sub-heading No. 6301.00 of the Central Excise Tariff. 2. We have heard Shri Satnam Singh, SDR, for the appellants/Revenue and Shri J.P. Kaushik, Advocate, for the respondents, M/s. JCT Mills Ltd., when the matter was posted for hearing on 12-3-1998. 3. Shri Satnam Singh, SDR, submitted that admittedly the goods in question were Chaddars, were stamped and sold as Chaddars and that the goods were entirely covered by the definition of `made u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring before the Collector of Central Excise, Chandigarh, the respondents had agreed that the goods in question were predominantly used as Chaddars. The dividing line described as excess weft threads were said to have been put to demarcate the length. With the excess weft threads at the demarcated line, the need for sewing or for other working to make them usable was avoided and the goods were ready for use by merely cutting at the dividing excess weft threads. 7. It is clear from the facts on record that to demarcate the individual pieces along the selvedge, there were five lines consisting of extra threads contributing greater thickness to cloth along these lines with the outer most line running at the edge. The adjudicating authority had noted as under : The purpose of these lines obviously is to provide a substitute for hem i.e. protect unravelling of yarn to prevent fraying of the edges. The ends of the fabrics are cut without any hemming or knotting and do not have any fringed or tasseled edges. However, in the middle of the fabrics there are two sets of four lines each running from selvedge to selvedge, i.e. lines along the weft with a distance of 20 cms. between the tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (e.g. by embroidery) on the material. The pieces of material so treated are often intended for further manufacture into lingerie. (5) Assembled by sewing, gumming or otherwise. These articles, which are very numerous, include garments. It should be noted, however that piece goods consisting of two or more lengths of identical material joined end to end, or composed of two or more textiles assembled in layers, are not regarded as made-up . Nor are textile products in the piece composed of one or more layers of textile materials assembled with padding by stitching or otherwise. (6) Knitted or crocheted to shape, presented in the form of a number of items in the length. 9. The expression `made up has been further explained in the HSN Explanatory Notes as under : (a) Cut otherwise than into squares or rectangles; (b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table cloths, scarf squares, blankets); (c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics, the cut edges of which have been prevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .50 per pair (ex-factory). The retail price would be about Rs. 70 per Pair (Rs. 35 per piece) Hemming the edges would not cost more than Rs. 2/- and I find it extremely difficult to believe that a person who spends Rs. 35/-would not be able to or willing to spend Rs. 2 or 3 for having the hems stitched. No doubt a person who buys a coat may use it without a button or with a broken button or so. But this is not the normal use to which the coat is put or intended to be put. On this score also I would hold that the charge is not established and that the goods are not ready for use even after they are cut. We do not find that these observations flow from the facts on record. The argument relating to rough handling, washing, crumbling etc. do not appear to be relevant to the issue under consideration. The goods had to be assessed as presented for assessment in the light of the rules of interpretation, section, chapter notes and the wordings of the Tariff entries. The cost of hemming, stitching etc. is also not an issue for consideration. 12. The goods in question were for common use. They were not of controlled variety. The markings as Chaddars indicated the purpose for which the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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