Excise Duty on readymade garments claimed as `Handicrafts’

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....Board's circular No. 773/6/2004-CX dated 28 th January, 2004 on the above subject. Certain doubts have been raised about the scope of the aforesaid circular. 02. The matter has been examined. It may be recalled that Hon'ble Supreme Court in the case CCE, New Delhi vs. Louis Shoppe & Anr. 1996 (83) ELT 13 (SC), laid down, as basic principle, that goods can be characterized as `handicrafts' if th....

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....dards laid down by the Supreme Court in Louis Shoppe case, the said circular has not made any material change. 04. Further, the Apex Court also had the occasion to examine the issue in the case of Padmini Products vs CCE, 1989 (43) ELT 195(SC), wherein it upheld the decision of the Tribunal that agarbaties are not "handicraft" because `skill of the worker and the use of hand" - the two pre-requ....

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....poses of exemption from Central Excise duty. Thus, any views expressed in this regard, such as that by the Development Commissioner (Handicraft), Ministry of Textiles have to be read harmoniously without deviating from the law laid down by the Apex Court. 06 Essentially, whether a particular item would merit to be classified as `handicraft' is a question of fact. No specific test can be laid do....