9911796707
TMI Blog1998 (5) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... msp;Shri R.S. Sanghia, ld. DR submitted that the respondents are manufacturing towelling fabrics as after cutting the towels. Out of the towel in fabrics, they undertake the process of hemming which has been recognised as process of manufacture as per Explanatory Notes of HSN. He further submitted that as per Explanatory Notes of HSN, Heading 58.02 excludes fabrics in piece which by the simple process of cutting along the defined lines indicated by the absence of weft threads, may be converted into separate fringed articles (Heading 63.02). He emphasises that the specific attention has to be paid to the word "cutting". As the respondents in addition to cutting are having the fabrics it cannot be called made up articles and it has to suffer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. He certified that the rolls of terry towels shown to him cannot be considered as terry towelling since each towel has distinct cross border and dividing threads. He also relied upon the extract from Advanced Textile Design by Wiliam Watson - Third Edition 1947 - page 382 and extract from Watson's Textile Design & Colour - Seventh Edition - Appendix I - page 340 in which it was mentioned "Terry or turkish towelling. A looped warp pile fabric, made in linen and cotton yarns and used for towels, bath mats, bed covers, dressing gowns, etc." Ld. Advocate also mentioned that this matter has been considered in 1988 by the Commissioner (Appeals), Madras in their own case in respect of Bangalore factory and the other decision of the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad but it is a continuous fabrics warranting classification under Heading 58.02. 4. We have considered the submissions of both the sides. We observe that the product in question manufactured by the respondent does have a dividing thread and as contended by the ld. Advocate, a predetermined towel of a particular size and shape could be seen. It has a cross border and it cannot be used for any other purposes other than as towels. Note 5 to Section XI makes it very clear that if any product is separated by cutting, dividing threads, it will remain within the ambit of made up articles classifiable under Chapter 63 of the Tariff. We are not convinced by the submission of ld. DR that the dividing thread in the product of the manufacturer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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