Judgement

VENKATACHALIAH, J. : - This appeal under Section 35-L of the Central Excises and Salt Act, 1944 (Act) by Messrs Siddeshwari Cotton Mills (P) Ltd., preferred against the appellate order dated 16-3-1984, of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, raises a short question whether the appellant, which manufactures cotton fabric on power looms which is otherwise exempt from duties of excise and the additional duties of excise respectively under Notification No. 230/77 and 231/77 dated 15-7-1977, loses the benefit of exemption by process of calendering on a calendering plant situated in the appellants premises.

The Notification 230/77Ce dated 15-7-1977 issued by Central Government under Rule 8(1) of the Central Excise Rules, 1944, exempts from the whole of the duty of Excise, unprocessed cotton fabric, falling under sub item (1) of item No. 19 of the First Schedule to the Act, which is manufactured on power looms (without spinning or processing plants) installed and worked with the permission of the Textile Commissioner. Likewise, Notification No. 231/77.CE dated 15-7-1977 exempts such cotton fabric from payment of the additional duties of excise.

2. T