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TMI Blog2025 (3) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... l products 'coir mattress' and it is exempted from payment of customs duty. There is no evidence to show the marketability of the 'quilt panel' and it is also admitted fact that the 'quilt panel' manufactured by the Appellant are exclusively used for final product. Thus, considering the decision of this Tribunal in the matter of Collector of Central Excise, Jaipur Vs Meca Quilts Ltd [2000 (5) TMI 74 - CEGAT, COURT NO. IV, NEW DELHI], once the manufacturing is not complete, it cannot be considered as different marketable product, and no demand of duty can be confirmed. Conclusion - i) The intermediate products used exclusively in the manufacture of exempted final products are not excisable if they lack marketability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re filed before Commissioner (Appeals) and Commissioner (Appeals) as per the impugned order upheld the finding of the Adjudication authority. Aggrieved by said orders, present appeals are filed. Appeal No. E/21283/2014 is for the period from 01.03.2006 to 28.02.2010 and Appeal No. E/21282/2014 is for the period from March 2010 to February 2011. 3. When the Appeals came up for hearing, the Learned Counsel for the Appellant submits that the products manufactured by Appellant are not 'quilt' but only 'quilt panels', which form part of the manufacturing activity for the final product i.e, Rubberized Coir mattresses, which is exempted from duty. Therefore, quilted fabric would be classifiable only under CETH 5811 - "Quilted Text ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t used for making of this panels, since final product coir mattress are exempted from duty. The Learned Counsel also draws our attention to the Circular No. 903/23/2009/CX dated 20.10.2009 and submits that the term 'used in the manufacture' is important to note. It means that Heading 5811 cover only material which are further used in making of quilted final product like bedding or bedspreads. The Ld. Counsel draws our attention the decision of this Tribunal in the matter of Collector of Central Excise, Jaipur Vs Meca Quilts Ltd - 2000 (119) ELT 497 (CEGAT -New Delhi); where it is held that:- "Where quilted fabric in running length is cut to size and edge bending done only when the quilted fabric is made into various items, they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nel' manufactured by the Appellant are exclusively used for final product. Thus, considering the decision of this Tribunal in the matter of Collector of Central Excise, Jaipur Vs Meca Quilts Ltd (supra), once the manufacturing is not complete, it cannot be considered as different marketable product, and no demand of duty can be confirmed. The Board as per the Circular no. 903/23/2009 CX dated 20.10.2009 held that:- "2. The matter has been examined by the Board. The HSEN to Chapter Heading 5811 reads as follows: 'These materials are commonly used in the manufacture of quilted garments, bedding or bedspreads, mattress pads, clothing, curtains, place-mats, underpads (silencers) for table linen etc. The heading does not cover: a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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