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TMI Blog2000 (6) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to processes specified therein from payment of duty. Notification 80/76 is reproduced below before its amendment: "In exercise of the powers conferred by sub rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts cotton fabrics, falling under sub-item 1 (2) of Item No 19 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), when subjected to the finishing processes specified in column (2) of the Table hereto annexed, from the whole of the entry in duty of excise leviable thereon subject to the conditions laid down in the corresponding column (3) of the said Table. THE TABLE S. No Description Conditions (1) (2) (3) 1.(a) Bleaching without the aid of power or steam, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise (Goods of Special Importance) Act, 1957. Both these notifications were amended on 24-11-1979, by the addition of the following proviso : "Provided that no such exemption shall apply- (i) if unprocessed cotton fabrics falling under sub-item 1(a) of the said Item No 11 on which the duty of excise is leviable either in whole or in part, are subjected to any process or processes specified in the said Table, within the factory in which the said unprocessed fabrics have been produced; or (ii) if cotton fabrics falling under sub-item 1 of the said Item No. 19 are subjected to any process or processes specified in the said Table within the same factory in which they have been subjected to any process, other then the processes specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so akin. Therefore, the benefit of the notification cannot be denied. 6. The argument of the advocate first aimed on the Collector's conclusion that all the units were in fact one factory. It is contended that each of the units had a separate existence in identity, they came into existence on a different time by one set of people and it has not been shown that they were all owned by Podar. Therefore, it was contended that the disqualification resulting from the operation of the proviso (which is added by the amendment made in 1979) would not apply. The dutiable process, was calendering with the aid of power. This was done in the premises of Natwar Textile Processing Pvt. Ltd. other processes done elsewhere. The exemption availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a temporary process, giving the calendered fabrics smooth and lusturous surface. This is done by flatening the round yarn which composed the fabric, so that they reflect a greater amount of light. However, this finishing is temporary. The yarn reverts to its round shape on steaming, or laundering. This ratio has been followed by the Tribunal in Sidheshwari Cotton Fabrics v. CCE - 1989 (44) E.L.T. 157. These decisions had not been rendered when the matter was before the Commissioner and therefore could not be cited before him. 9. It will then follow that the benefit of notifications would continue to be available, if the processes which were undertaken without the aid of power. The calendaring undertaken by the appellant with the ai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in Super Bleaching Works, the keiring operation was stopped from 3-4-1982, whereafter the firms switched over to a process of cold bleach. He said that the seven keirs were dismantled and kept out of use till 7-8-1982. They were thereafter "scrapped out". This statement was recorded considerable period before the issue of the show cause notice on 28-12-1983. There is no material advanced in the show cause notice, or reflected in the order of the Collector, on the basis of which it can be said that keiring operations took place in any of the seven units which the notice alleged constitute the single factory. There is therefore no rebuttal to the statement of Vyas and in any case, there is no material on the basis of which it can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extile Processors Pvt. Ltd. It refers to enquiries with the banks account with regard to the six units, summons issued to various persons in these six units etc. Paragraph 15 of the notice, the allegation is that the six proprietory concerns in which Navneet Manufacturing Company, is not included, a paper creation of Natwar Textile Processors Pvt. Ltd. 12. The omission of Navneet Manufacturing Company, both from the narration with regard to enquiries and more critically from the specific charge is significant. From the absence of its name in the specific charge, it would follow that there was no proposal to treat it as part of Natwar Textile Processors Pvt. Ltd. The processes in that factory and clearances from it therefore could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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