Per G.R. Sharma:

The captioned five appeals, four preferred by M/s. Dhvani Terefabs Exports Pvt. Ltd. and one preferred by the Revenue were heard together. In addition the Misc. application 11 led by Revenue was also heard and are being disposed of by this common order.

2. Out of the above five appeals, in the three appeals filed by M/s. Dhvani Terefabs Exports the issue is the same, therefore, they were heard first. The issue in these three appeals is whether terry towels made by cutting, hemming and stitching without the aid of power by the appellant are dutiable or not.

3. The appellants are engaged in the manufacture of knitted pile fabrics. It emerges in running length. There is no dispute about its classification under Chapter Heading 60.01. It is processed. Duty on the processed fabrics is paid. The appellant receives duty paid processed fabrics in its factory. It is then cut to size and edges hammed with sewing machine. Revenue was of the view this activity amounts to manufacture and 'made up article' classifiable under Chapter Heading 63.01 is produced in terms of Note 5 of Section XI. The demand of duty in the present case relates to this activity. The Department allege