9911796707
TMI Blog1998 (12) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... 013 (hereinafter referred to as the respondent). 2. The brief facts of the case is that the respondent had filed a Classification List No. 2/94-95, dated 7-12-1994 classifying their product processed embroidery fabrics under Chapter sub-heading 5805.13, claiming Nil rate of duty on the basis of Board s Letter No. 25/12/69-CX. 2, dated 18-1-1974. A show cause notice was issued for denial of exemption claimed and approved of Classification List accordingly, which was adjudicated in Respondent s favour, Hence the department filed the appeal for review. 3. Shri Sujay N. Kantawala, Advocate, appeared before me for personal hearing on 2-12-1998. Learned Advocate stated what is mentioned in their appeal petition and submitted additional submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-item for the base fabric and becomes classifiable under the tariff sub-item for the embroidered fabric. Such embroidered fabric, even if subjected to processing, will not again fall under the tariff sub-item for base fabrics. Therefore, no further processing duty is leviable on base fabric which has been subjected again to processing after being embroidered. 6. Moreover, I have also been told that this question has been decided in the past by the Commissioner (Appeals) in this Order dated 10-7-1996 in the case of Encee Dyeing and Printing Works, which are excerpted as follows :- The question for the consideration is whether the Note 8 to Chapter 58 applies to the embroidery processed by the appellants. It is the contention of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are described `Woven File fabrics and chenille fabrics , in Heading No. 58.02 goods are described as Terry Towelling and similar woven terry fabrics , in Heading No. 58.04 the goods are described as Tulles and other net fabrics , etc. In contrast to the above, in case of Heading No. 58.05, the goods are described as embroidery in the piece, in strips or in motifs . This clearly indicate the legislative intention that the embroidery is not treated as fabrics or else in case of Heading No 58.05 also the heading description would have used the works as embroidered fabrics rather than the word embroidery alone. Thus in my opinion the Note 8 is to be applied only in those cases where the goods are described in the heading description of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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