https://www.taxtmi.com/caselaws?id=87941 Terry towels made by manual cutting and stitching were treated as eligible for exemption under Notification No. 65/87 because the relevant test was whether power was used in manufacturing the finished towels, not merely in processing the base terry towelling cloth. Prior use of power on the cloth did not defeat the claim where the final towels were produced without power and the cloth and finished goods were treated as distinct for exemption purposes. The dutiability of the processed cloth did not bar exemption for the manually made towels, and the Revenue challenge failed. en-us Thu, 15 Jan 1998 00:00:00 +0530 Tue, 13 Sep 2011 18:54:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87941 Terry towels made by manual cutting and stitching were treated as eligible for exemption under Notification No. 65/87 because the relevant test was whether power was used in manufacturing the finished towels, not merely in processing the base terry towelling cloth. Prior use of power on the cloth did not defeat the claim where the final towels were produced without power and the cloth and finished goods were treated as distinct for exemption purposes. The dutiability of the processed cloth did not bar exemption for the manually made towels, and the Revenue challenge failed. Case-Laws Central Excise Thu, 15 Jan 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87941