2017 (2) TMI 363

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..... kers who undertook embroidery and painting on the garments - circular no. 773/6/CX dated 28th January 2004 by Central Board of Excise & Customs - Held that: - the said circular does permit some tolerance to the use of machinery in the production of ‘handicrafts’. We also notice a total absence of finding in the order of the original authority that the goods are not ‘handicrafts’ - it has not been .....

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..... ieces and ₹ 60,504/- on 544 pieces of readymade garments , with interest thereon and reduced penalty under rule 173Q of Central Excise Rules, 2002 to ₹ 35000. Revenue is also in appeal against impugned order for the curtailment of the order of original authority. 2. The issue pertains to eligibility for notification no. 76/1986-CE dated 10 th February 1986 which exempts handicraf .....

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..... s who undertook embroidery and painting on the garments. The original authority appeared to hold it against the assessee that they had not complied with the directions to withdraw their surrender letter and to claim benefit of exemption on piece-by-piece basis. The original authority appeared to have been influenced by the docile payment of duty even before issue of show-cause notice as sufficient .....

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..... segregating the two categories of goods only the seizure was confirmed. The method of segregation although could be regarded not beyond doubt. Those who have experience to identify handicraft items they will be more objective in differentiating the one category from the other and those who are not experienced may treat the goods alike or take a decision on the basis of evidence adduced for the sam .....

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..... cision is based, for the same reason, on personal view. despite which he has not deigned to examine the applicability of circular of Central Board of Excise Customs supra. 5. In view of the above and the decision the Hon ble Supreme Court supra, we have no doubt that it has not been established that the goods produced by assessee are covered within the ambit of circular of Central B .....

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