TIRUPATI PRINTS Vs. COMMISSIONER OF CUSTOMS, SURAT-I

JUDGEMENT

(1.) THE issue involved in the present appeal is as to whether the activity of pleating of grey fabrics, carried out by the appellant would amount to manufacture for the purposes of levy of Central Excise duty.

(2.) THE process of pleating undertaken by the appellant, as discussed in the impugned order is as under : The unit has contended that no heat setting is done in the process of pleating. Giving details thereof, the unit submitted that on the pleating machine the fabrics (on which pleating was to be done) was fed between two papers coming out from the two rolls, passed through a set of specific pleating blades with varying designs, intensity and characteristics and the pleated fabrics is removed from papers and the process ended there. They explained, that the purpose of using the machine was to have pleating effect and that the use of papers was to prevent the fabrics from getting burnt. As mentioned earlier, the unit has produced a photocopy of leaflet/brochure which throws light on the specification of the machine. From the specification given in the said leaf let/brochure issued by the manufacturer of the machine M/s. Cheen Lien Machinery Corrp., No. 82, Chun Ting St., Shu Lin, Taipei, Hsion, Taiwan, it is observed that considerable electrical energy (varying from 6kw/1HP to 13kw/5HP) is required to run the machine. From this fact coupled with the units submission that use of papers was to prevent the fabrics from getting burnt it is obvious that heat setting is being carried out during the process of pleating. Therefore, I reject the contentions raised by the unit that they do not use heat setting during the process of pleating.

(3.) WHEREAS the appellant have contended that the said process of pleating results only in temporary visual enhancement, the Revenue is of the view that in view of the Note -4 to Chapter -54, the activity of pleating is covered under any other process and would amount to manufacture. Accordingly, demand is confirmed against the appellant along with imposition of penalties.