9911796707
TMI Blog2002 (3) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... running length at the hands of the appellants who are the processors. 3. The facts out of which this controversy has sprung up, may briefly be stated as under : The appellants are processors of various textile fabrics. Besides this, they also undertake the job work pertaining to the processing of knitted pile fabrics. They receive this fabric in running length from M/s. Dhvani Terefab Exports P. Ltd. (Dhvani) who are manufacturer of the fabric. Thereafter, they subject the same to processing i.e. washing, dyeing, bleaching, hydro-extraction, tumble dyeing and drying and for carrying out this processing, they cut the grey fabrics received, into convenient lengths i.e. 10 metres, 15 metres etc. They had been paying duty at the appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by placing reliance on clause (b) of this Section Note, confirmed the order of the Asstt. Commissioner in respect of classification. Section Note 5(f) of Section XI reads as under : "5. For the purposes of this Section, 'made-up' means : (f) Knitted or crocheted to shape, whether presented as separate Items or in the form of a number of items in the length". Note 5 (b) runs as under : "(b) Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (for example, certain dusters, towels, table clothes, scarf squares, blankets)." In the HSN Explanatory Note, the scope of Note 5(b) has been defined as under : "Produced in the finished state, ready for us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpressed regarding the same product i.e. terry towels, by South Zonal Bench presided over by different members by holding that terry towels despite cross border and even after cutting through dividing threads and stitching on hands, could not be taken away from the category 'made up articles' in terms of Section Note 5(b) of Chapter XI and were still classifiable under Chapter 63. This view has been, however, also adopted by Bench "D" of this Tribunal, in the case of CCE, Madras v. M/s. Binny Ltd. (B C) Mill (decided vide Final Order No. E/402/98-D, dt. 12-5-98). 8. Faced with these contradictory judgments by this different Benches of the Tribunal, in our view in order to set the controversy at rest and to avoid multiplication of contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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