Exemption for cotton fabrics and marketability require fresh consideration after conflicting evidence made the original adjudication incomplete.

Colour fixation by applying sodium silicate was examined for eligibility under the exemption for cotton fabrics processed without the aid of power or steam, alongside the separate question of marketability. Competing material was on record from both sides, including additional evidence sought by the appellant and documents relied on by the Revenue, so the existing adjudication was found insufficient for a final merits determination. The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh consideration of the exemption claim, marketability, evidence, and applicable case law.

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Issues: (i) Whether the impugned order should be set aside and the matter remanded for fresh consideration of the claim under the exemption notification and the issue of marketability.

Analysis: The dispute turned on whether the process of colour fixation by applying sodium silicate fell within the exemption for cotton fabrics processed without the aid of power or steam, and whether the product was marketable. The record also showed competing material on both sides, including additional evidence sought to be introduced by the appellant and contrary documents relied upon by the Revenue. In these circumstances, the existing adjudication was considered insufficient for a final decision on merits.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh decision after considering the evidence and applicable case law.

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