1985 (5) TMI 226

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....e accordingly paying duty at the reduced rates. Later, Show Cause Notice dated 30-4-1983 was issued to them pointing out that the process of hydro-extraction was carried on with the aid of power and they were, therefore, not entitled to exemption under the notification above noted. On adjudication the Assistant Collector held that hydro-extraction was not a manufacturing process under Section 2(f) of the Central Excises and Salt Act. But later under proceedings under Section 35E(4) of the Act the Collector, Central Excise (Appeals), set aside the order of the Assistant Collector and restored the demands issued by the Range Superintendent. It is against the said order that the present appeal has been preferred. 2. We have heard Shri Gopal P....

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....ovt. of India and the other of this Tribunal) in both of which it had been held that hydro-extraction which takes the moisture from the fabrics cannot be said to be a process, the decision of the Collector was patently wrong. He contended that the distinction that the Collector drew on the ground that the said two decisions dealt with cotton fabrics whereas the subject goods were man-made fabrics, would not be a proper ground for refusing to follow the ratio of the said decisions. 5. Shri Tayal, however, contended that the said two decisions related to the applicability of Notification No. 80/76, dated 16-3-76 and that the said decisions would not, therefore, strictly apply to the present case involving the applicability of Notification No....

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....s also part of the process involved, since without drying the cloth could not be removed for delivery to the customer. If the drying had been done manually or by merely being hung out for drying, no power would have been used in that process. But, admittedly, the appellants had carried out the process of drying (hydro-extraction) with the use of power. Such drying was part of the process of bleaching and dyeing. Even though power may not have been used up to that stage, the use of power in the process of hydro-extraction would make the process of dyeing and bleaching carried out by the appellants one with the use of power, since the process of hydro-extraction would at least be a process incidental and ancillary to the completion of the man....

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....r/moisture from the fabrics does not impart any change in characteristics, texture, etc. on the fabrics. It cannot be described as a finishing process what to say of manufacturing process." The Collector of Central Excise, Bombay, in his order dated 17-9-84 had nothing to comment about this finding but set aside the order of the Assistant Collector relying on use of hydro-extraction as a process in Notification No. 297/79. I fail to see how Notification No. 297/79 could be used for interpreting Notification No. 79/82. Even my learned brothers have not made use of this notification for concluding that hydro-extraction is a process of manufacture. In the absence of requisite material on record as to the role played by hydro-extraction in the....