Handloom fabric exemption for vertical blinds upheld where processing did not change the fabric's character under excise notifications.

Vertical blinds made from processed handloom fabrics qualified for nil-rate duty under the cited excise notifications as made-up textile articles of Chapter 63. The expression "handloom fabrics" was read without any limiting distinction between processed and unprocessed fabric, and coating, curing or slitting did not destroy the character of the base material. The exemption was therefore available to the vertical blinds, and the Revenue's challenge failed.

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Issues: Whether vertical blinds manufactured out of processed handloom fabrics were entitled to nil rate of duty under Notification No. 6/2000-C.E., dated 01-03-2000 and Notification No. 3/2001-C.E., dated 01-03-2001 as made-up textile articles falling under Chapter 63 of the Central Excise Tariff Act, 1985.

Analysis: The notifications granted nil rate of duty to made-up textile articles made out of handloom fabrics falling under Chapter 63. The expression "handloom fabrics" was not restricted by any qualifying words such as "processed" or "unprocessed". The fact that the fabrics underwent coating, curing and slitting did not by itself take away their character as handloom fabrics, and the benefit could not be denied merely because the handloom fabrics were processed before being used in the manufacture of vertical blinds.

Conclusion: The exemption was available to the vertical blinds, and the Revenue's appeal had no merit.

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