1998 (11) TMI 268

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....goods manufacturers and used by the manufacturers as "Elastic tapes" can be termed as "labels" for enjoying benefit under Notification No. 27/94 dated 1-3-1994. The certificates from the Hosiery Association, by itself, cannot be a deciding factor since opinion of the Association is likely to be coloured so as to protect the interest of its members. I find that the product in question in this particular issue is primarily used as "elastic tapes" in the Hosiery Industry. During personal hearing before me the appellant also confirmed that the impugned goods has the function of holding undergarments. It is therefore, clear that the impugned order goods have a functional role in relation to the garment and viewed from this angle its identity as ....

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....ery goods round the waist of users of such hosiery goods. It was contended that also served the purpose of denoting or displaying or identifying the ownership of such hosiery goods. The appellant claimed the benefit of exemption under Notification No. 27/94-C.E., dated 1-3-1994 against Sl. No. 18 of the Table annexed to this Notification. The Department alleged that the said tapes were not labels and, therefore, did not qualify for examination against Sl. No. 18 of the Table annexed to Notification No. 27/94 and a show cause notice asking the appellant to explain as to why the duty amounting to Rs. 61,000/- for the period 1-3-1994 to 31-3-1994 should not be demanded from them was issued. The appellant submitted that the tapes manufactured b....

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....arate strip of paper or parchment, but a written description of the article upon which it is placed or made, as to its ownership, or character, or quality, or extent." Ld. DR submitted that a label does not have functional use but only indicates the name or instructions. He submits that in the instant case, the said tapes are used for holding the garments round waist and thus they have a functional use. Moreover, he submits that the name/brand name is Woven in the fabric of tape and hence it is neither affixed or pasted nor made on the body of the garments. He submits that the said tape, therefore, cannot be termed as a label. He submitted that these Narrow Tapes are in running length and, therefore, cannot be termed as labels. He referred ....