Exemption for man-made fabrics denied where processing used power and steam, and cotton fabric concession was inapplicable.

Exemption under Notification No. 3/2001 was unavailable for viscose sarees and viscose silk sarees treated as man-made fabrics processed with the aid of power or steam. The notification denied relief where such fabrics were processed in a factory having bleaching, dyeing or printing facilities using power or steam, and the record showed use of a steamager for drying and power for mixing. The statements admitting these facts were not retracted. The concession for cotton fabrics under serial No. 114 did not apply because the goods were not cotton fabrics. Duty demand and confiscation were therefore sustained.

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Issues: Whether the appellant was entitled to exemption under Notification No. 3/2001 for man-made fabrics processed with the aid of power or steam.

Analysis: The dispute concerned viscose sarees and viscose silk sarees, which were treated as man-made fabrics. The relevant notification denied exemption where such fabrics were processed in a factory having the facility for bleaching, dyeing or printing with the aid of power or steam. The record showed use of a steamager for drying and use of power for mixing, and the admissions made in the statements were not retracted. The concession relied upon for cotton fabrics under serial No. 114 of the notification was held inapplicable because the goods involved were not cotton fabrics.

Conclusion: The appellant was not entitled to the exemption and the confirmation of duty and confiscation were upheld.

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