TaxTMI 
TaxTMI 
1998 (6) TMI 153
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....khinder Singh, JCDR, for the Respondent. [Order per : Lajja Ram, Member (T)]. - In this appeal filed by M/s. Khadi Mandir Unifinishing Plant, Bikaner the matter relates to the eligibility of the appellants to the benefit of exemption provided under sub-heading No. 5107.23 of the Central Excise Tariff. Both the Dy. Collector of Central Excise and the Collector of Central Excise (Appeals) had ....
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....d of power. He also submitted that the appellants were rural based industry and imposition of any penalty was not justified. He further submitted that `Khadi' includes handloom fabrics. 3. In reply Shri Lakhinder Singh, ld. JCDR referred to the order-in-original and submitted that there was a clear distinction between Khadi and the handloom. In Khadi both spinning of yarn and weaving of fa....
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....ut the aid of power. Such is not the case for handloom fabrics. In the handloom fabrics, there is no condition that the yarn used for weaving should also be spun without the aid of power. 5. The relevant Tariff entry under Heading No. 5107.23 of the Central Excise Tariff is extracted below : "5107.23 - Processed with the aid of power by a factory owned by a registered handlooms co-opera....
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....on have been mentioned as Khadi, Cotton, Woollen etc. The Tariff entry has to be interpreted as per the express language and we consider that the certificate at page 10 of the paper book in no way accords approval of the appellants' unit for the purpose of development of handlooms. 6. The Dy. Collector of Central Excise have discussed this aspect of the matter in para 17 of the order. Afte....