2003 (12) TMI 419

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....Appellant. Shri S. Singhal, JDR, for the Respondent. [Order per : S.S. Sekhon, Member (T)]. - The appellants are processors of cotton and man-made fabrics and hold a Registration for the said processing attracting Central Excise levy. 2. They had - (a)        Received duty paid embroidered fabrics classified under Heading 5805 of Central Excis....

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....us processing charges at 10% ad valorem without showing the relevant heading. (ii) Notice dt. 23-8-1995 was similarly worded as notice dt. 3-2-1995. (iii) Notice dt. 17-1-1996 alleged clearance made under classification heading 5804 to be with wrong exemption. (d)       The original authority found that embroidery was done on Grey fabrics of cotton ....

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....ore, as per Chapter Note 8 of Chapter 58 and Grey embroidered fabric is different from processed embroidered fabric in the market. Further manufacturer found that Chapter Note 8 to Chapter 58 came into force from midnight of 15/16th March 1995, therefore held demands prior to that date were not maintainable. Hence this appeal. 3. Heard both sides and considered the material, it is found - ....

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....;      However, another Bench in the case of M/s. Dora Processors and M/s. Encee Dyeing & Printing Works Order No. CB/426 to 428/03 - WZB, dated 12-3-2002 have held that 'embroidery' is not fabrics and Chapter Note 8 is not applicable since it is applicable only to fabrics. This would cause us to come to a finding that there is a difference in opinion about the application....