Deemed credit on bleached fabric denied where invoice described the goods as bleached, not half-bleached input.

Notification No. 29/96-C.E. denied deemed credit where the processed fabric itself was used as an input before further processing. The appellant argued that bleached fabric should be treated as half-bleached or partially processed material and relied on a trade notice supporting eligibility for partially processed fabric. The invoice, however, described the goods as bleached fabric, and bleaching was treated as a distinct manufacturing process. On that basis, the fabric could not be recharacterised as half-bleached merely to satisfy the notification, and the deemed credit claim was rejected.

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Issues: Whether deemed credit under Notification No. 29/96-C.E. was admissible on bleached fabric used as input in textile processing, and whether the fabric described in the invoice as bleached fabric could be treated as half-bleached or partially processed fabric for the purpose of eligibility.

Analysis: The notification denied its benefit where the processed fabric itself was used as an input before processing. The appellant sought to characterise the material as half bleached and relied on a trade notice suggesting that partially processed fabric could qualify. The invoice, however, described the goods as bleached fabric. Bleaching was treated as a distinct process, and reference was made to Chapter 54 as recognising bleaching as a manufacturing process. On that basis, the fabric could not be treated as half bleached merely to bring it within the notification.

Conclusion: The claim for deemed credit was rejected and the disallowance was upheld.

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