2000 (9) TMI 452

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....ed on this score. He has, in addition, confiscated the plant and machinery of these two assessees, imposed penalties on them as well as on Sushil Kumar Kanodia, their common director. These three are in appeal before us. 2. The Commissioner agrees that the process carried out by the assessees is intermingling of yarn. He says, "I find that the unit had manufactured siya silk yarn through the process of intermingling. In the instant case, two single yarns get intermingled by the process of intermingling/air-mangling through air-jet winding machine". He finds that Note 3 to Chapter 54 of the Tariff has been rightly invoked in the notices to show cause. He says that by the process undertaken by the assessee, "the initial forms of the f....

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....hat they had manufactured and cleared air-textured yarn. As we have noted, the Commissioner nowhere says specifically that the process undertaken by the assessee amounted to air-texturising nor is it possible to infer from his order this what he intended to say. This alone should be sufficient to say that the extended period would not be available. Apart from this, the fact that it was necessary to include by way of amendment in 1999 of the note itself shows that there was no clear understanding that air-intermingling did not amount to manufacture. The position is somewhat puzzling with regard to air-texturing. "Texturising" which is nothing other than texturing was a process specified in the note as it stood prior to the amendment. Air-....