Customs, Excise and Gold Tribunal - Mumbai
Cce vs Bombay Dyeing And Mfg. Co. on 17 June, 1999
Equivalent citations: 1999(85)ECR361(TRI.-MUMBAI)
ORDER C.N.B. Nair, Member (T)
1. The Revenue's appeal is against the decision in the impugned order that the appellants are not liable to pay duty at the wadding stage when they manufacture blankets.
2. Shri V.M. Udhoji, learned JDR reiterated the points made in the appeal of the Revenue.
3. Countering the arguments of the Revenue, learned Counsel Shri M.H. Patil submitted for the respondents that in the manufacturing process carried out by the respondents, a stage of manufacture of wadding does not arise. He explained that polyester fibres are placed in layers on both sides of grey fabric and are needle punched to produce felt. They pay duty on the felt so manufactured and blankets are exempt from duty. He submits that placing of layers of fibres on cloth so as to make them ready for needle punching is no manufacturing process at all. He explained that waddings are manufactured by placing layers of fibre one over the other and compressing them so as to impart to them certain strength. No compressing is carried out in the instant case, and before needle punching, the fibres having no fixed shape or thickness. Shri Patil also submitted that at the stage before needle punching the goods are not capable of being brought to the market and sold. Therefore, the question of levy does not arise.
4. We have perused the records and have considered the submissions made by both the sides. We find that manufacture of wadding does not take place at the stage before needle punching in the instant case. The impugned order has taken note of the process of manufacture involved and has come to the correct conclusion. In these facts, we are not able to find any merit in the appeal of the Revenue. The same is, accordingly, dismissed.
(Dictated and pronounced in the open court).