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TMI Blog2002 (12) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... ell as woollen fabrics; that they also manufacture yarn which is used in the manufacture of fabric; that the fabric woven from yarn has various designs and patterns on them; that in order to obtain the required design of the fabric the yarn is fed through an item known as Dobby card which is nothing but Myler Sheets; that Myler sheets are plastic sheets which are cut into required length and the holes are punched on the same on the basis of required design; that such punched Myler sheets are also referred as Dobby card in the trade; that this process of cutting and punching sheets would not amount to manufacture as the activity does not result it emergence of any new excisable item; that further Dobby cards are not standarised item which ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the list of final products, the benefit of Notification is available to them. Finally he submitted that if it is held that they are liable to pay the duty on Dobby cards the Modvat credit of the duty paid on inputs should be extended to them. 3. Countering the arguments Shri R.C. Sankhla, learned D.R., submitted that the process of cutting Myler sheets into size and punching holes thereon a new identifiable product comes into existence; that the purpose of punching holes is to obtain the required design of the fabric; that without the processes undertaken by the Appellants the design cannot be imprinted on the fabric; that Myler sheets as such cannot be used for the purpose of obtaining design on the fabric; that the dobby cards ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure and as such Dobby cards are eligible to the Excise duty. We also find substance in the submission of the learned SDR that merely because the Dobby cards are to be used with a particular machine would not make them a non-marketable product. The second question involved in this appeal is whether they are eligible to avail of the exemption under Notification No. 67/95. This notification exempts capital goods as defined in Rule 57Q and inputs as specified in the table to the notification manufactured in a factory and used within the factory of production of final products specified in column 3 of the table annexed to the notification. As per column 3 of the table, Chapter 55 of the Schedule to the Central Excise Tariff Act is excluded from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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