IMPORTANT POINT
Respondent is covered by the proviso inserted in the exemption notification No. 109/1986 C.E. dated 27.2.1986 as amended by Notification No. 3/1988 C.E. dated 19.1.1988 and is thus not entitled to benefit of the notification. The Tribunal s order under appeal, taking contrary view, is set aside.

Headnote:Central Excise Rule, 1944-Rule 8(1)-Additional Duties of Excise (Goods of Special Importance) Act, 1957)-Section 3(3)-Benefit of Notification No. 109/1986-C.E. dt. 27.2.1986 as amended by Notification No. 3/1988-C.E. dt. 19.1.1988-Whether the respondent is covered by the proviso inserted in the notification? (Yes)-Result-Respondent is not entitled to benefit of the notification-Appeal allowed.
       Held : A careful reading of the proviso to the notification would show that by resorting not only to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting crease-resistant processing, but also to "any other process or any two or more of these processes", the respondent would lose the benefit of the exemption. It is a well established principle that general terms following particular expressions take their colour and meaning as that of the preceding expressions, applying the principle of ejusdem generis rule, therefore, in construing the words "or any other process", the import of the specific expressions will have to be kept in mind. It follows that the words "or any other process" would have to be understood in the same sense in which the process, including tentering, would be understood. Thus understood, a process akin to stentering/tentering would fall within the meaning of the proviso and, consequently, the benefit of the notification cannot be availed by the respondent.
        (Para 6)
       Held further : Even accepting the Tribunal s finding that the process does not strictly amount to stentering, it cannot be disputed that the process adopted by the respondent is analogous to stentering, as admittedly, the respondent is drying the fabric by passing through the hot air stenter. (Para 9)
       Held consequently : In this view of the matter, the proviso clearly applies and the respondent, therefore, is not entitled to the benefit of the notification. The order under appeal is set aside. The civil appeal is, accordingly, allowed. In the facts and circumstances of the case, we make no order as to costs. (Paras 10 and 11)

ORDER

This appeal is filed by the Collector of Central Excise, Bombay against the order, No. E/254/94-D, of the Customs, Excise and Gold (Control) Appellate Tribunal in Appeal No. E/4217/90-D dated 29th April, 1994. By the impugned order, the Customs, Excise and Gold (Control) Appellate Tribunal (for short, the Tribunal ) set aside the order of the Collector (Appeals), Bombay, affirming the order of the Assistant Collector holding that the respondent is entitled to the benefit of Notification No. 109/1986-C.E. dated 27th February, 1986, as amended by Notification No. 3/1988-C.E. dated 19th January, 1988 (for short, the Notification ).

2. The question that arises for consideration is : whether the respondent is covered by the proviso inserted in the notification?

3. The respondent-assessee manufactures high fur fabrics by silver knitting process. In Classification List No. 1/1987 dated 10th March, 1987 filed by the respondent, the product was classified under Heading 60.01 and benefit of the said notification was claimed attracting nil rate of duty. There is no dispute that the respondent was entitled to the exemption granted under the said notification till 9th January, 1988 when the proviso was inserted therein.

4. It would be useful to read Notification No. 109/1986-C.E. dated 27th February, 1986, as amended by Notification No. 3/1988-C.E. dated 19th January, 1988 here :

"In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944 read with sub-section (3) of Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government hereby exempts woven pile fabrics and chenil fabrics, tufted textile fabrics and knitted or crocheted fabrics falling under Heading No. 58.01 or 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1957) as is in excess of the duty of excise and the additional duty of excise leviable under the aforesaid two Acts on the corresponding woven fabrics falling under Chapter 51, 52, 53, 54 or 55 of the said Schedule, read with any notification for the time being in force.

Provided that nothing contained in this notification, shall apply to knitted or crocheted fabrics of man-made textile materials falling under sub-heading No. 6001.12 of the said Schedule and subjected to the process of bleaching, dyeing, printing shrink-proofing, tentering, heat-setting, crease resistant processing or any other process or any two or more of these processes.

Explanation :-For the purpose of this notification, the expression, corresponding woven fabrics means fabrics specified in Chapter 51, 52, 53, 54 or 55 which corresponds to knitted or crocheted fabrics with reference to the processes carried out thereon, or the value of the fabric per square meter or the textile material contained therein.

2. This notification shall come into force on the 28th day of February, 1986."

5. The notification discloses that the benefit available to silver pile fabrics falling under Heading 58.01 or 60.01 of the Schedule to the Central Excise Tariff Act, 1985 is lost if the product is subjected to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting, crease-resistant processing or any other process or any two or more of these processes.

6. A careful reading of the proviso to the notification would show that by resorting not only to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting, crease-resistant processing, but also to "any other process or any two or more of these processes", the respondent would lose the benefit of the exemption. It is a well established principle that general terms following particular expressions take their colour and meaning as that of the preceding expressions, applying the principle of ejusdem generis rule, therefore, in construing the words "or any other process", the import of the specific expressions will have to be kept in mind. It follows that the wo

Click Here to Read the rest of this document