2006 (11) TMI 436

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....from October 1991 to October 2002 (the demand raised in 15th show cause notice dated 3-12-2001 covering the period from March 1997 to June  1998 was dropped on the ground of limitation), on "'non-woven fabric/sheet of man-made fibre", an intermediate product arising in the course of manufacture of jute backed floor coverings, as a result of holding it to be leviable to duty under CET sub-heading 5603.00, together with interest, and imposed a penalty of Rs. 7,00,000/- on the appellants, is the excisability of the intermediate product - according to the appellants, the product is not marketable as it is only a loose web of man-made fabrics without any dimensional stability, while according to the Revenue, the product is marketable, as si....

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....nish Needle Loom in which needling process is continued and again delivered into a roll form. II passage: This loosely assembled fibre roll having no strength is punched with 7 oz jute again on F.N Loom and wound in a roll form. This roll is back-coated with the binder to produce a final product called Jute Floor covering named commercially as HITMAGIC HITMIRACLE:- The process is continued up to I passage of Pre-needling similar to Hitmagic. Then the roll is fed to structure needle loom to get required design. This roll is again punched with 12 oz jute on F.N. Loom. This roll is back-coated with binder on Stenter to reach its final stage and is commercially termed as HITMIRACLE. There are various intermediate processes to make a....

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....nd non-woven sheets used captively in the manufacture of jute floor coverings (the disputed product) is that the latter are not subjected to the process of curing and, therefore, do not have elasticity and in view of this, nobody would purchase the same and, therefore, the disputed product cannot be marketed.   From this it is very clear that the product in dispute is a non-woven jute sheet and, therefore, it is not open to the assessee to now contend that no punching with jute has taken place in the disputed product.   Since both the marketed commodity and the disputed product are non-woven jute sheets, the department has discharged the initial burden of establishing that the product in dispute is marketable and hence e....