Exemption for processed art silk fabrics failed where cutting before clearance breached the no-cutting condition.

Processed art silk fabrics were held ineligible for exemption under Notifications No. 106/70 and 107/70 because the exemption required clearance without cutting any portion of the fabrics, whether damaged or not. The prohibition was treated as barring any cutting of the processed fabric into smaller pieces, including cuts made to suit printing tables or machines. Since the fabrics were admittedly cut before clearance, the exemption condition was not met and the benefit could not be claimed.

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Issues: Whether the petitioners were entitled to exemption under Notifications No. 106/70 and 107/70 dated 1-5-1970 when the processed art silk fabrics were cut into smaller pieces according to the size of the printing tables.

Analysis: The exemption condition required that the processed goods be cleared without cutting into fents, rags, chindies or any portion of the fabrics, whether damaged or not. The expression prohibiting clearance of any portion of the fabrics was treated as barring any cutting of the processed fabrics. Since it was admitted that the fabrics were cut to suit the printing machine, the condition for exemption was not satisfied.

Conclusion: The petitioners were not entitled to the exemption under the notifications.

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