Scouring versus bleaching determines exemption eligibility for cotton grey fabrics under the notified relief scheme.

Exemption under Notification No. 253/82-CE was available for cotton grey fabrics where the process undertaken was scouring and not bleaching. The lower authorities relied mainly on the use of boiler and kettle, but no technical evidence supported a finding of bleaching. The appellant's process was described as treatment in an alkaline medium to remove natural oil and dirt, which is distinct from bleaching, and the sample analysis referred to off-white woven fabrics without establishing that bleaching had occurred. Because the notification expressly covered scoured fabrics and the evidence did not reliably prove bleaching, denial of the exemption was unsustainable; the impugned order was set aside and relief followed.

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Issues: Whether exemption under Notification No. 253/82-CE dated 8.11.2002 was available to cotton grey fabrics claimed to have been subjected to scouring, or whether the process undertaken amounted to bleaching so as to deny the exemption.

Analysis: The findings of the lower authorities that the fabrics were bleached rested mainly on the use of boiler and kettle, without supporting technical material. The process described by the appellant was scouring, namely treatment in an alkaline medium to remove natural oil and dirt, which is distinct from bleaching. The sample analysis described the goods as off-white woven fabrics, which did not support a clear finding that bleaching had taken place. The notification expressly exempted scoured fabrics without conditions, and no other reliable evidence established that the process was anything other than scouring.

Conclusion: The exemption was held to be admissible, and the denial of benefit was unsustainable.

Final Conclusion: The impugned order was set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: Where the evidence does not reliably establish bleaching and the notified exemption expressly covers scouring, the exemption cannot be denied merely on suspicion or on an unsupported inference from the machinery used.

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