2002 (7) TMI 307

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....Shri Satnam Singh, partner of the appellants-firm informed the visiting officers that there's is a partnership firm and they had installed the machinery for printing the fabrics; that they were receiving grey man-made fabrics from the traders and after doing printing, the same were dispatched in the running lengths to the traders under the cover of invoices/challans. The visiting officers seized 270 metres valued at Rs. 4,950/- of finished printed fabrics lying in the unit and the proceedings were initiated against them. They were issued a show cause notice dated 20-7-1998 by the Deputy Commissioner of Central Excise, Amritsar in which they were called upon to show cause why the central excise duty amounting to Rs. 3,68,920/- on the man-mad....

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....e also submitted that they were engaged in the manufacture of scarves out of man-made fabrics on job work basis. Their Customers had purchased the duty paid fabrics from the market for getting the process of printing on it and after printing 32 pieces of the scarves in a single length of fabrics come into existence. They further stated that these scarves emerged in uncut stage with clearly demarcated dividing lines during the process of printing and then these scarves were cut along the dividing line into individual scarves which were hammed by means of sewing machines. It was further submitted that the uncut scarves were not marketable as printed fabric in the market and on the bills, they had written the number of scarves only. Finally th....

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.... require only hemming of the edges. Further, the argument of the appellant that the goods, in question, cannot be used as dress material or for any other purpose other than scarves, has also not been negated by the lower adjudicating authority. Under the circumstances, it looks, apparently, clear that the appellants had printed scarves though on the running length of grey fabrics. I am of the view that once the scarves on the printed fabrics are clearly identifiable as discussed above, the printed fabrics can only be used as scarves by cutting along side the dividing line. I have perused section notes 5(b) and 5(c) of Section XI, as referred to by the appellant with reference to the definition of 'made-up' article. As per Section Note 5(b),....