9911796707
TMI Blog1999 (7) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant. Being aggrieved by this order, the appellants have filed the captioned appeal. 2. The facts of the case in brief are that the appellants are engaged in the processing of cotton fabrics. On a visit to the factory premises, the officers noticed that 12 jiggars meant for dying process were installed in the unit and out of 12 jiggars, 4 jiggars were being operated with the aid of electric blowers and diesel burners by which colour solution was heated upto certain required temperature. A statement of Shri Dwarka Prasad, Manager was recorded who stated that the appellant was using electric blowers and diesel burners to maintain temperature of dyeing solution at 50 C so that at this temperature the colour got fixed; they switched ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted that in the instant case blowers working with the aid of power were used only for a few months and thus the process cannot be taken as integrally connected to the manufacturing process of fabrics. He submitted that the case of the assessee is fully covered by the decision of this Tribunal in the case of Eastern Metal Ferro Alloys Ltd. v. C.C.E. as reported in 1996 (86) E.L.T. 104 wherein the Tribunal held that the use of power in the raw materials or in the articles which do not directly participate in process of manufacture of final product does not amount to use of power in the manufacture of final product. He submitted that similar view was taken by this Tribunal in the case of Collector of Central Excise, Baroda v. Ojas Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the Hon ble Delhi Court held that there was no provision for confiscation of goods and imposition of penalty under 1957 Act and therefore, the confiscation of the goods and imposition of penalty in the instant case is unwarranted and may be set aside. Ld. Counsel submitted that this decision of this Hon ble Delhi High Court was followed by the Tribunal in the case of Shri Pawan Kumar, M/s. Sintex Processors and M/s. Simplex Training Co. Ld. Counsel therefore, submitted that since on merits, their case was covered by the decision of this Tribunal in the case of Eastern Metal Ferro Alloys read with Chamundi Vastralankaran Udyog and on imposition of penalty and confiscation of goods by the decision of the Delhi High Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od or not the answer was that the demand has been calculated only for the winters months. We note that use of blowers is made for mixing colours, therefore, the pertinent question to be answered is whether mixing of colours is an integral part of the process of manufacture. Here we are dealing with the processing of fabrics and printing of fabrics is a process. For printing, mixing of colours is essential, unless the colours are properly mixed, printing cannot take the desired shape. Thus mixing of colours is an essential part integrally connected with the process of printing (manufacture). 8. We have examined the case law cited and relied upon by the Counsel for the appellant. In so far as the case of Chamundi Vastralankaran Udyog is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of penalty is concerned, we find force in the argument of the ld. Counsel for the appellant. In view of the fact that Delhi High Court had examined the issue and had interpreted the law as contended by the Counsel for the appellant, we hold that confiscation of fabrics and imposition of penalty is not justified. 12. Having regard to the above discussions, we hold that power was used in the manufacture of processed cotton fabrics and thus duty amounting to Rs. 42,645.60 is payable and we hold accordingly. 13. Insofar as confiscation of the goods and imposition of penalty is concerned, the order confiscating the goods and imposing penalty is set aside. 14. The appeal is, therefore, partly allowed as above. Consequential relief, if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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