https://www.taxtmi.com/caselaws?id=96171 For exemption under Notification No. 65/87-C.E., the decisive question was whether the final goods were manufactured without the aid of power; prior use of power in knitting and processing inputs did not disqualify tere-towels made only by cutting, hemming and stitching without power, so the exemption applied. Cutting running knitted processed fabric into small lengths, by itself, did not amount to manufacture because it did not yet produce a marketable article; the assessee succeeded on this issue. The demand for 1-3-1994 to 31-3-1994 was within limitation, interest was not chargeable for want of the relevant provision during that period, and penalty was reduced. en-us Thu, 03 May 2001 00:00:00 +0530 Sat, 17 Dec 2011 17:21:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96171 For exemption under Notification No. 65/87-C.E., the decisive question was whether the final goods were manufactured without the aid of power; prior use of power in knitting and processing inputs did not disqualify tere-towels made only by cutting, hemming and stitching without power, so the exemption applied. Cutting running knitted processed fabric into small lengths, by itself, did not amount to manufacture because it did not yet produce a marketable article; the assessee succeeded on this issue. The demand for 1-3-1994 to 31-3-1994 was within limitation, interest was not chargeable for want of the relevant provision during that period, and penalty was reduced. Case-Laws Central Excise Thu, 03 May 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96171