COMMISSIONER OF C. EX. Vs. SHITAL INTERNATIONAL

JUDGEMENT

(1.) Revenue has filed this appeal being aggrieved by the order passed by the ld. Commissioner (Appeals) holding "that process carried out by the appellant does not amount to manufacture and this does not attract duty. Knitted Pile Fabric of man -made textile fabrics (Artificial Fur Lining) being manufactured by the appellant is thus correctly classifiable under heading 6001.12 as unprocessed. Impugned order is set aside." Since the issue was broadly covered by a number of decisions, pre -deposit of duty was dispensed and with the consent of both the parties, the appeal itself was heard.

(2.) The facts of the case in brief are that the respondents herein are engaged in the manufacture of Knitted Fabric of man -made Textile material (Artificial Fur Lining) classifiable under Chapter Heading 6001.12.

(3.) On scrutiny of the records, Central Excise Officers observed that the assessee had declared Knitted Pile Fabrics/Fur Fabrics under Chapter sub -heading 6001.12 as dutiable and had paid Central Excise Duty on this item up to 30 -9 -2000. They, however, issued a letter on 3 -10 -2000 and filed a revised declaration on 1 -10 -2000 declaring that the fabric was unprocessed and were chargeable to Nil rate of duty in terms of Notification No. 6/2000 -C.E., dt. 1 -3 -2000 as also attracting Nil rate of duty under Notification Nos. 9/96 and 18/96. A SCN was issued to the assessee/respondent in this case asking them to explain as to why the fabric manufactured by them should not be treated as processed fabric and why should not be assessed to duty.