TaxTMI 
TaxTMI 
1996 (6) TMI 236
X X X X Extracts X X X X
X X X X Extracts X X X X
....llowed clearance duty free and which permission later on was found to have been erroneously given and was not in order. 2. The learned DR for the department pleaded that the facility under Rule 96D of the Central Excise Rules, 1944 is available only where fabrics have to be subjected to process as recognized under Central Excise Law. He pleaded that the respondents are laminating non-woven fabrics and this is not one of the processes coming under the definition of process as per the chapter notes under chapters 52, 54 and 55. He pleaded that lamination is not set out as one of the process and therefore, permission under Rule 96D is not applicable in respect of these fabrics. He pleaded that since permission was given erroneously earli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fabrics or jute manufactures, or man made fabrics from one factory to another without payment of duty for processing. - (1) Cotton fabrics or jute manufactures or man-made fabrics may be removed without payment of duty from one factory to another factory including a processing factory for the purpose of processing, subject to observance of the procedure hereinafter prescribed. (2) For the purpose of this rule, `processing factory' shall be deemed to be a factory working with the aid of power in which cotton fabrics or jute manufactures or man-made fabrics are processed but in which such fabrics or manufactures are not woven. (3) When cotton fabrics or jute manufactures or man-made fabrics are removed from the factory where they ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at arises for consideration is what is the scope of the term process of fabrics in the context of Rule 96D. We observe that so far as definition of manufacture under Rule 2(f) is concerned, unlike earlier, there is no specific definition specifically in the context of fabrics and what is to be considered as process of manufacture. There is no definition given under Rule 96D also as to what is to be considered as process in the context of fabrics under this rule. It is only under the tariff the scope of process to be carried out in the context of fabrics falling under Chapters 52, 54 and 55 is set out. It is seen that the process mentioned relates to specific products falling under certain headings and the processes which have to be consider....