1996 (7) TMI 268

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....rmed the demand of Central Excise duty amounting to Rs. 16,41,322.30 and also imposed a personal penalty of Rs. 10 lakhs. 2. The facts of the case are in brief that the appellants are engaged in the scouring of wool. The department alleged that scouring of wool is a process of manufacture and therefore duty under Tariff Item 68 was chargeable on scouring wool. For this purpose the department relied upon charging of duty on scoured wool alleged to be manufactured by M/s. Punjab Wool Combers Ltd. The adjudicating authority held that scouring of wool amounts to manufacture and therefore confirmed the demand and imposed a personal penalty. 3. Shri G. Shiv Dass, learned Counsel appearing for the appellants submits that the sole r....

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....ol Combers has been that the process of removal of greasy matter with hot water, soap, etc. does not bring about any kind of transformation. They have urged that wool continues to remain in its material form as sheered from the body of sheep and that consequently, scoured wool is not a product arising out of a process of manufacture and hence not excisable. The department, however, has taken a view contra as formulated in the Order-in-Appeal. However, we find that there is evidence to show that the department`s own understanding is that tariff item for raw-wool covers scoured wool also. Circular F. No. 525/8/85-Cus.-TRU of the Central Board of Excise and Customs dated 23-7-1985 is as follows :- "I am directed to say that question of clas....