1985 (4) TMI 316

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....licence therefor. 12,155 metres of canvas cloth falling under Tariff Item 19-(1) as well as 7,456 metres of Ded Suti fabrics falling under Tariff Item 19-(2) were detained and seized. A verification of the Accounts book showed earlier clearance and disposal of other quantities of similar goods. On issue of show-cause notice, and after adjudication, the Collector of Central Excise, Kanpur under order dated 1-1-1979 held that the fabrics falling under Tariff Item 19-(1) are not liable to duty as the process had been done without the aid of power or steam, but that so far as fabrics falling under Tariff Item 19-(2), they were liable for duty at the concessional rate of 25 paise per sq. metre under notification No. 88/69 as amended. He held tha....

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....ater-proofing, rubberising, shrink-proofing, organdie processing or any other process/or any one or more of these processes." He therefore contends that after the said amendment the decision relied on by Shri Awasthi would be of no effect. He further points out that in New Shakti Dyeing Works Pvt. Ltd. and Am. v. Union of India (1983 E.L.T. 1736 Bombay) the Bombay High Court had considered the earlier decisions (on the question of processing amounting to manufacture) and had also considered the effect of the amendment above-noted had held that under the above amendment, as also on first principles, the process of bleaching, dyeing or printing brought into existence a new marketable commodity different from the grey cloth handed over to the....