9911796707
TMI Blog1999 (11) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... . 40,000/- on the appellants. 2. The facts of the case are that the appellants are engaged in the manufacture of bed sheets and pillow covers. The appellants manufactured bed sheets and pillow covers in the factory on job work for M/s. Mangalam, M/s. Loknath Tolaram and M/s. Mangal Kripa. Prior to 1-3-1986, bed sheets manufactured out of running lengths of cotton fabrics were classifiable under T.I. 19 of the erstwhile tariff. The pillow covers were exempted. The Department alleged that the bed sheets manufactured by the appellants were dutiable and since the appellants had cleared the bed sheets without payment of duty, therefore there was clandestine removal of bed sheets. Accordingly, the Collector held as indicated above. 3. Shri R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der seizure as detailed in annexure to the SCN. Ld. Counsel also submits that the period 1-4-1986 to 13-12-1986 is covered by two SCNs one adjudged by the Collector and other by the Asstt. Collector. He submits that in view of the Asstt. Collector s order for the period 1-4-1986 to 13-12-1986 the period available for confirmation of demand with the Collector was only from 1-3-1986 to 31-3-1986. He submits that the demand, if any, can therefore be confirmed only for the period 1-4-1986 to 31-3-1986. He submits that in view of the matter, the penalty is harsh and may be waived and prays that the appeal may be allowed. 4. Shri V.M. Udhoji, ld. JDR submits that cutting, hemming and stitching of fabrics amount to manufacture and, therefore bed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on fabrics and if the cotton fabrics had paid duty, therefore, there was no question of bed sheets paying duty. From the records placed before us, we note that there is no allegation that the cotton fabrics from which the bed sheets were prepared were not duty paid. Since the duty was paid on cotton fabrics, therefore, we find that there was no provision for charging duty again on bed sheets. Thus, we hold that the duty was not demandable on the bed sheets cleared upto 28-2-1986. 6. However, the position changed from 1-3-1986 inasmuch as the cotton fabrics were classifiable under a different chapter heading and the bed sheets were classifiable under different chapter sub-headings. We note that since the bed sheets were chargeable to duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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