Calendering not treated as manufacture under Chapter 52, making excise duty refund admissible subject to PLA verification.

Refund of excise duty on grey calendered cotton fabrics was held admissible because calendering was not one of the processes treated as manufacture under Chapter 52, and it could not be forced within the phrase "or any other process." As the duty paid on the cleared goods was therefore not sustainable, refund was allowed, subject to the assessee producing the PLA copy showing the debit so the same duty payment was not claimed twice.

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Issues: Whether the refund of excise duty paid on grey calendered cotton fabrics was admissible, on the footing that calendering did not amount to manufacture under Chapter 52 and the relevant notification.

Analysis: Note 3 to Chapter 52 specified certain processes that would amount to manufacture, and calendering was not included. The process undertaken by the appellant was not one of the enumerated processes, and it could not be brought within the expression "or any other process". In the circumstances, the duty paid was not sustainable on the cleared goods and the refund was admissible, though the appellant was required to produce the copy of the PLA from which the duty had been debited, so that the refund was not claimed again on the same duty payment.

Conclusion: The refund claim was allowed, subject to production of the PLA copy.

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