2014 (9) TMI 536

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....y evidence is produced by the Revenue to show that the process is undertaken by the assessee, amounts to shrink proofing which amount to manufacture as defined under the Act. ii) Whether, after considering the technical expert opinion, the conclusion of the adjudicating authority that the process undertaken by the assessee are of wetting and dampening and as of not a lasting character and the same cannot be held to be shrink proofing is legally correct and proper." 2. The respondent assessee is engaged in the making of denim fabrics for which the company uses air jet looms, which are shuttle-less looms. In addition to the above, in the process of making denim fabrics, the company undertakes an operation, whereby the cloth is subject to a ....

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....of law have been framed for consideration at the time of admission, as stated above, the 2nd substantial question of law is material for this case. The 2nd substantial question of law that processing of the cloth by the use of 'MONTFORT' machine, though according to the department, amounts to manufacture, but the same was disputed successfully by the assessee before the adjudicating authority as also the Tribunal, requires consideration for the purpose of arriving at a decision as to whether the same would amount to manufacture or not. In such an event, the result would have a bearing on whether the goods will be liable to duty or not. In this regard, learned counsel appearing for the 1st respondent placed reliance upon Section 35-L....