MAHENDRA FABRICS Vs. COMMISSIONER OF C. EX., AHMEDABAD

JUDGEMENT

(1.) THE appellants are engaged in the business of purchase and sale of fabric. In some cases, the appellants were selling ready -made dress material for Punjabi lady suit. For this purpose, they were getting following activities done through job workers :

(2.) THE job workers put three pieces of cloth in a plastic bag with a trade name for the dress material and supplied such duly packed cloth to the appellant. The plastic bag contained one piece being neck cut and embroidery cloth for Kurta, second piece being Dupatta and third piece being a cut piece of fabric for Pyjama.

(3.) THE department took up investigation, conducted enquiry at the appellants shop and workshops/units of other job workers who were doing the above items of work not only for the appellant but for other market sellers also. Based on the investigations conducted, enquiries and documents recovered and after adjudication process, the impugned order has been passed. In the order, the Commissioner has held that the product discussed above is classifiable under Chapter Heading 6201 of Schedule to CETA, 1985 and is chargeable to Central Excise duty. Accordingly, he has demanded a duty of Rs. 3,15,66,409/ - for the period from September 2001 to 9 -7 -04 with interest as applicable. He has also imposed penalty equal amount of duty as penalty. The appellants are in appeal against this order.