2003 (2) TMI 268

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....the Appellant. Shri M.C. Shekhar, SDR, for the Respondent. [Order per : S.S. Kang, Member (J)]. -  In these appeals the controversy relates to the classification of the processed knitted pile fabrics in running length at the hands of the appellants who are the processors. 2. Brief facts of the case are that the appellants are processors of various Textiles Fabrics and also un....

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....he Central Excise Tariff as "other made-up textile articles". The adjudicating authority confirmed the demand and imposed penalty. The appeals  filed  by  the  appellants  were  dismissed by  the  Commissioner (Appeals). 3. The Divisional Bench of the Tribunal referred the matter to the Larger Bench for considering the following issue : "Whether t....

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....l be material and relevant." 5. Heard both sides. 6. The contention of the appellants is that the show cause notice was issued to the appellants classifying the fabrics as made-up articles by invoking the provisions of Section Note 5 (f) of Section XI of the CETA. The adjudicating authority confirmed the demand on this ground only. Whereas the Commissioner (Appeals) in the impugned....

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....e the provisions of Section Note 5(f) of Section XI of the CETA are reproduced below : "Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length" Section Note 5(b) of Section XI of the CETA : "Produced in the finished state, ready for use (or merely needing separation by cutting dividing threads) without sewing or other working (....