TaxTMI 
TaxTMI 
2013 (4) TMI 434
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.... Order-in-Original No. Period 1. E/1120/96 Assessee A-17/96 dated 19-1-96 Appeal allowed 67/95 dated 26-6-1995 1-9-1994 to 31-1-1995 2. E/1121/96 -do- -do- 18/95 dated 3-2-1995 Rejection of C.L. 3. E/1122/96 -do- -do- 51/95 dated 23-5-1995 1-8-1994 to 31-8-1994 4. E/1123/96 -do- -do- 64/95 dated 16-6-1995 1-9-1994 to 31-1-1994 5. E/1674/96 -do- A-131/96 dated 30-4-96 Appeal allowed 71/95 dated 11-7-1995 1-8-1994 to 31-8-1994 6. E/1675/96 -do- -do- 108/95 dated 13-11-1995 partly confirmed and balance dropped 1-2-1995 to 15-3-1995 7. E/1676/96 -do- -do- 113/95 dated 15-12-1995 partly confirmed and balance dropped 16-3-1995 to 31-3-1995 8. E/1677/96 -do- -do- 114/95 dated 15-12-1995 pa....
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....luding all expenses incurred by them on account of several processes conducted by them which had attributed to its value upto the date of clearance. It was the contention of the department that the Notification No. 71/94, dated 23-3-1994 and 35/95, dated 16-3-1995 are not applicable to the respondents. Show-cause notices were decided by the Asstt. Commissioner who in 4 cases has confirmed duty and in 3 cases he partly confirmed the duty demand and partly dropped the demand. In the last 3 cases, the respondents have filed 3 appeals against the Commissioner (Appeals)' order against the part confirmation of the demand whereas the Revenue has filed 3 appeals against the part dropping of the demands before the Commissioner of Central Excis....
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.... rate. He, therefore, submitted that the Commissioner (Appeals) has erred in dropping the demand on activity of sizing which amounted to manufacture under Chapter Note of the Tariff Act. 4. The ld. Advocate appearing for the respondents submitted that the Revenue's contention is that for the products falling under Chapters 52 and 55 sizing amounts to manufacture as sizing is not included in any of the exemption Notification like 71/94, dated 23-3-1994 and 35/95, dated 16-3-1995. He has heavily relied upon the Tribunal's decision in the case of Maheshwari Mills Ltd. v. C.C.E., Ahmedabad - 2004 (165) E.L.T. 246 (Tri.-Del.), wherein it was held that as the processes after spindle stage were exempted from Central Excise duty and yarn have....
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....pecific rate and with effect from 1-3-1994 the duty was charged to ad valorem rates. It is the contention of the Revenue that the process of sizing amounted to manufacture and duty is required to be paid by them on the value of sized yarn during the disputed period. 7. We find that Chapter Note 1 of Chapter 52 reads as under (prior to amendment in 1995) :- "In relation to products of heading Nos. 52.03 and 52.04, sizing, beaming, warping, wrapping, winding or reeling, or any one or more of these processes, or the conversion of any form of the said products into another form of such products shall amount to 'manufacture'. The duty on sized yarn shall be cleared on the basis of its weight before sizing." We also find that under Notifi....
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....tion No. 46/86 as amended by Notification No. 71/94 prior to 26-5-1995 in respect of cotton yarn. 8. With effect from 26-5-1995 Chapter Note 1 of Chapter 52 was changed as under : - "In relation to products of heading Nos. 52.04, 52.05 and 52.06, the process of dyeing, printing, bleaching, mercerizing, twisting, texturising, doubling, multiple-folding, cabling or any other process or any one or more of these processes, or the conversion of any form of the said products into another form of such products shall amount to manufacture." Similarly, Chapter Note 2 of Chapter 55 prior to 26-5-1995 was as under :- "In relation to products of Heading Nos. 55.08 to 55.12, bleaching, dyeing, printing, shrink-proofing, tentering, heat-setting,....