TaxTMI 
TaxTMI 
1989 (6) TMI 171
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....ntral Excise law inasmuch as they had manufactured and cleared a quantity of calendered cotton fabrics falling under Item No. 19I(b) of the First Schedule ("CET") to the Central Excises & Salt Act during the period from 14-5-1981 to 19-9-1981 without obtaining a Central Excise Licence, without maintaining statutory records, without submission of price list/classification list, without observing Central Excise formalities and without payment of Central Excise duty leviable thereon amounting to Rs. 2,62,767.04. The Collector of Central Excise, Calcutta, in due course, adjudicated the case and directed the appellants to pay the aforesaid sum of duty besides imposing a penalty of Rs. one lakh on them under Rule 173Q of the Central Excise Rules.....
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....er process" contemplate processes which impart a change of a lasting character to the fabric by either the addition of some chemical into the fabric or otherwise. "Any other process" in the section, the Court observed, must share one or more of these incidents. The expression "any other process" is used in the context of what constitutes 'manufacture' in its extended meaning and the expression "unprocessed" in the exemption notification (230/77-C.E., dated 15-7-1977 and231/77-C.E., dated 15-7-1977) draws its meaning from that context. It was contended before the Court that the process of plain-calendering neither added anything to the cotton fabric nor was the effect brought about by it lasting. It was nothing more than pressing the cotton ....
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....rooved - roller calendering. 5. In reply, the Learned D.R., submitted that there was no information on record as to actual process employed by the appellants. He referred to certain technical authorities ("Encyclopaedia of Textiles", 3rd Edition), by the Editors of American Fabrics and Fashions Magazines and "Textiles Fibre to fabric" by Corbman on Calendering. In Verma Industrials Ltd., Bangalore v. Collector of Central Excise, Bangalore -1984 (18) E.L.T. 403 (Tribunal), the Tribunal had held katcha dying to be a process of manufacture. In Empire Industries Ltd. & Ors. v. Union of India & Ors. -1985 (20) E.L.T. 179 and UjagarPrints, etc. etc. v. Union of India & Ors. -1988 (38) E.L.T. 535, the Supreme Court had not distinguished be....
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.... in the ground plan submitted by them. In para 28 of the order, the Board had noted that these contentions had not been disproved. In the circumstances, it is reasonable to proceed on the footing that the appellants had plain and not grooved roller calendering machines. As Shri Rangaswamy correctly pointed out, the Department could have, but did not, investigate further into the matter at the material time. We do not think it is necessary to launch on a factual investigation, as the D.R. would have us do, on the aspect at this distant date. 8. In para 9 of the Tribunal's order No. C 151 & 152/84 dated 16-3-1984, relevant extracts from "Modern Textiles" by Dorothy S. Lyie (John Wilay & Sons, N.York), Chamber's "Dictionary of Science ....
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....to cotton fabrics by the appellants did not amount to "any other process" referred to in Section 2(f)(v) of the Act and Item No. 19 I(b) of the C.E.T. 9. In Mafatlal Fine Spinning & Manufacturing Co. Ltd. v. Collector of Central Excise 1989 (40) E.L.T. 218 (SC), the question arose whether cotton fabrics which underwent the process of calendering and steaming ceased to be "grey" fabrics or became "processed" fabrics. Of course, the dispute was in the context of the Central Excise Rules 48A(2) which provided for different rates of interest on the deferred yarn duty depending on whether the fabrics cleared were "grey" or "processed". But, in our view, the principle of the Supreme Court's decision is relevant for our present purpose bec....