1994 (4) TMI 125

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... machine. They claimed exemption under Notifiction No. 253/82, dated 8-11-1982, as amended. It was noticed by the Department that the appellants were using foam spraying machine, which was attached to zero-zero machine and from which the solution of Alkosin-SR (a chemical compound) was used for spraying foam. This spraying was done to give lustre, good finish as well as shrinkage to the fabrics. The Assistant Collector held that the process undertaken by the party is not only zero-zero process but something more than that amounting to manufacture and the process was not exempted under the notification. Accordingly, the party had been asked to pay duty amounting to Rs. 12,311.12 in respect of 8759.44 Sq. Mts. of processed Denum fabrics which....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n article and this process cannot be considered to be any other process amounting to manufacture as defined in Chapter Note 2 of Chapter 52. He said that Alkosin-SR is nothing but a softener. It is primarily used because the denim is course cloth and as such it requires to be softened to have a good finish. The purpose of sprayer attachment is energy saving device. The Alkosin SR is dissolved in water and this water solution is sprayed in control manner so that the larger quantity of water is not required and drying becomes speedier. Both the authorities below denied the benefit on the ground that it was a process of manufacture but without giving reasons how spraying of foam is a process of manufacture. It smoothens and lustres of temporar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unal in the case of Moti Dye Works, Thane v. Collector of Central Excise, Thane, reported in 1985 (21) E.L.T. 914 and order of the Tribunal as per Order No. E. 82/93-D, dated 5-3-1993 in the case of M/s. Amar Processors v. Collector of Central Excise, Bombay, reported in 1993 (68) E.L.T. 134 (Tri.) 5. In reply Shri Sanjay Grover said that Assistant Collector has given a finding that process of applying Alkosin-SR foam on fabrics during zero-zero process amounted to manufacture and similar view was taken by the Collector (Appeals) while denying the exemption. But now the learned D.R. is making out a new case that process not amounting to manufacture was also subjected to duty which is not permissible at this stage. Further using Chemical ....