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TMI Blog2017 (2) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... ments would be treated as handicraft and accordingly eligible for exemption under N/N. 76/86. Board s Circular No. 773/6/04-CX dated 28.1.2004, clarified that classifying the goods as handicraft one or more of the process such as hand painting or hand printing or handicrafts Tie and Dye or handicrafts Batik, embroidered or crocheted ornamentation, appliqui work of sequins, glass or wooden beads, shells, mirrors or Ornamental motifs of textiles and other materials, extra warp/wept ornamentation of cotton, silk, zari (metal thread in Gold/Silver) wool or any other fibre yarn can be carried out. In the facts of the present case, except the part of the embroidery process, which was carried through pedal operated machine, most of the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... handicrafts valued at ₹ 5,29,055/- without payment of duty. As per the statement of Shri Dharmesh Dani, Partner of the appellant, it was revealed that embroidery was done on the goods with the help of machine run on motor. After completing the investigation, a show-cause notice was issued. The adjudicating authority confirmed the demand of duty and ordered confiscation of the goods with option to redeem the goods on payment of redemption fine and also imposed penalty on the appellants and Shri Dani. Being aggrieved by the Order-in-Original, the appellants filed appeal before the Commissioner (Appeals), who upheld the Order-in-Original and rejected the appeal. Therefore the appellants are before us. 2. Ms. Aparna Hirandagi, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. 4. On careful consideration of the submissions made by both sides and on perusal of the records, we find that the Revenue has denied the exemption Notification No. 76/86 only on the ground that for the manufacture of readymade garments machines were used. As per the statement of the appellant occasionally the pedal operated machines were used, however, the hand process such as, embroidery, painting, chrocheting and ornamentation was done. The Hon'ble Supreme Court in the case of Louis Shoppe (supra) has held that even if some machine is used in the process, the goods would still be treated as handicrafts and that handmade readymade garments would be treated as handicraft and accordingly eligible for exemption under Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit appears to have been given to them. The seizing officers seized only such of those goods which according to them were not entitled to exemption under Notification No.76/86 dt.10.02.86. In fact after 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 same from either side. When there is such scope of interpretation, the deciding officer's decisions could be at variance. A better basis woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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