1998 (5) TMI 380

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....sp;Shri R.S. Sanghia, ld. DR submitted that the respondents are manufacturing towelling fabrics as after cutting the towels. Out of the towel in fabrics, they undertake the process of hemming which has been recognised as process of manufacture as per Explanatory Notes of HSN. He further submitted that as per Explanatory Notes of HSN, Heading 58.02 excludes fabrics in piece which by the simple process of cutting along the defined lines indicated by the absence of weft threads, may be converted into separate fringed articles (Heading 63.02). He emphasises that the specific attention has to be paid to the word "cutting". As the respondents in addition to cutting are having the fabrics it cannot be called made up articles and it has to suffer d....

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..... He certified that the rolls of terry towels shown to him cannot be considered as terry towelling since each towel has distinct cross border and dividing threads. He also relied upon the extract from Advanced Textile Design by Wiliam Watson - Third Edition 1947 - page 382 and extract from Watson's Textile Design & Colour - Seventh Edition - Appendix I - page 340 in which it was mentioned "Terry or turkish towelling. A looped warp pile fabric, made in linen and cotton yarns and used for towels, bath mats, bed covers, dressing gowns, etc." Ld. Advocate also mentioned that this matter has been considered in 1988 by the Commissioner (Appeals), Madras in their own case in respect of Bangalore factory and the other decision of the Commissioner (....