TaxTMI 
TaxTMI 
1994 (10) TMI 137
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....abrics in the city which was not accompanied by any Central Excise document. The scrutiny of the records of the appellants' factory revealed that more than 15000 sq. meters of bleached cotton fabrics were cleared from the factory on 25-12-1982 against Gate Pass Slip Nos. 7419 and 7429, dated 25-12-1982. On the grounds that the appellants were not entitled to the exemption under Notification No. 130/82, dated 20-4-1982 in respect of processed cotton fabrics, the Central Excise officers seized the 8185.25 meters of bleached cotton fabrics detained during the preventive checks. They also seized another quantity of 21278 meters of cotton fabrics found in the appellants' factory. After further investigations, the appellants were served with a sh....
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.... appellants' contention that their clearances of bleached cotton fabrics on 25-12-1982 had to be worked out by excluding the clearances of dyed fabrics from the total clearances on that day on the grounds that the appellants were engaged in bleaching, dyeing and printing of cotton fabrics and not exclusively in dyeing of such fabrics. The Additional Collector also held that the goods in question were not eligible for the exemption under the relevant notifications since they were also using `kier' machine for the purpose of bleaching cotton fabrics. 2. On behalf of the appellants Shri Pallow Shishodia, Learned Advocate appeared before us. He submitted that the Additional Collector had erred in arriving at the finding that on 25-12-19....
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....25-12-1982 they had not cleared bleached cotton fabrics in excess of 15000 sq. meters has to be rejected since in his statement dated 6-2-1983, Shri Puran Raj Abbani, a partner of the firm had admitted that on 25-12-1982 they had cleared 17925 sq. meter of bleached cotton fabrics. He added that the appellants claim that they were not using `kiers' for their bleaching operations has also to be rejected since the Additional Collector's finding in this regard was based on the appellants' own admission that the `vessels' which they were using were known as `kiers'. He pleaded that the note of one Shri R.M. Mittal of Ahmedabad Textile Industries Research Association filed by the Advocate with his letter dated 30th September, 1994 may not be take....
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..... However, the exemption was subject to the proviso to the Notification and the Explanation which were amended by Notification No. 194/82-C.E., dated 18-6-1982. The relevant extract from the amending notification is reproduced below :- "Sl. No. Notification No. and Date Amendment 1 2 3 ..... ...... ...... 3. 130/82-Central Excise, dated the 20th April, 1982 In the said notification, for the proviso, and Explanation, the following shall be substituted, namely :- "Provided that nothing contained in this notification shall apply in respect of clearances of cotton fabrics, - which are subjected to the process of bleach....
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....n the factory in which such fabrics are so bleached, for the process of printing (either after such bleaching or after subjecting them to any further process) shall not be taken into account for determining the limits on thirty six lakh square meters or, as the case may be, fifteen thousand square meters of such fabrics." 6. Learned Counsel for the appellants has contended that the Collector's finding that the appellants had crossed the limit of fifteen thousand sq. metres in respect of clearances on a particular day is erroneous since on 20-5-1982 they had cleared a total quantity of processed fabric measuring 20960.05 sq. meters, out of which dyed fabrics accounted for only 12576.33 sq. mt. and the remaining quant....