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TMI Blog2015 (4) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... any one or more of these processes shall amount to manufacture and in our view the process of crushing would be covered by the expression any other process. In view of this, we do not find any infirmity in the impugned order holding that the process of crushing would amount to manufacture. Marketability - Held that:- Proprietors of the assessee firms themselves have accepted that the crush fabrics are saleable as such and are known in the market as crushed fabrics. Moreover there are number of internet websites of several manufacturers of crush fabrics which offer different verities of crushed fabrics for sale. Extended period of limitation - Held that:- Since the dispute in this case pertains to interpretation, no malafide can be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in it. After passing through the felt machine, the crushing effect becomes permanent. The Department was of the view that this process of the appellant would amount to manufacture in view of Chapter Note 4 of Chapter 55 of the Central Excise Tariff according to which in relation to the products of adding 5511, 5512, 5513 and 5514, the process of bleaching, dyeing, printing, shrink briefing, stentering, heat setting, crease resistance processing or any other process or any one or more there processes shall amount to manufacture. According to the Department, the process of crushing with the aid of power is covered by the term any other process in Chapter note 4 of Chapter 55. Accordingly by the issue of show cause notices, the duty was dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E/2308/2005 against part of the order reducing the penalty under Section 11AC to ₹ 50,000/-. 2. Heard both the sides. 3. Ms. Priyanka Goel, Advocate, the learned Counsel for M/s Dhanjjal Industries and Ms. Surabhi Sinha, the learned Counsel for M/s Guru Nanak Crushing, pleaded that the crushing of fabric does not result in permanent changes in the fabrics, that the Apex court in the case of Siddeshwari Cotton Mills (P) Ltd. vs. Union of India reported in 1989 (39) E.L.T. 498 (S.C.), while dealing with the issue as to whether the process of calendaring is a process covered under Section 2 (f) of the Central Excise Act, 1944, has held that the scope of the phrase or any other process in Section 2 (f) has to be interpreted in ejusd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f imposition of penalty on them. 4. Shri Ranjan Khanna and Shri M.S. Negi, the learned DRs, defended the impugned orders by reiterating the findings of the Commissioner (Appeals) and pleaded that in both the cases, the assessees were crushing the grey manmade fabrics received by them from customers on job work basis and for this process, they were using similar machine being operated with the aid of power, that Shri Harjinder Singh, Proprietor of M/s Dhanjjal Industries, Amritsar and Shri Chanpreet Singh, Proprietor of M/s Guru Nanak Crushing in their respective statement have stated that the crushed fabrics after passing through the felt machine gets permanency of the crushed effect obtained in the crushing machine, that crushing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that the process of crushing is undertaken with the aid of power. The process of crushing of fabrics involves passing of fabrics through crushing machines several times in course of which the steam is passed and the crushing effect is imparted and, thereafter, passing the fabric through the felt machine wherein is on account of heat setting, the effect of crushing becomes permanent and cannot be undone on washing. These facts are not disputed by the assessees and in both the cases, the assessees have accepted that the crush fabrics, as such, are sold. In view of this, it has to be held that the process of crushing results in permanent change in the fabrics and, hence, in view of Chapter Note 4 of the Chapter 55, this process would hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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