NYLON CARPET MFG CO I PVT LTD Vs. COLLECTOR OF C EX
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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S.K. Bhatnagar, Member (T) -
(1.) THIS is a Stay Application filed by the Petitioners with reference to the order of the Collector (Appeals), Calcutta dated 21-9-1990. The learned Counsel, Shri S. K. Bagaria stated that they are manufacturers of 'Flock' fabrics and for this purpose they purchase duty-paid fibres from the market and cut them to sizes not exceeding five milimetres in length and thereafter, subject them to several other processes such as washing, drying, sizing and sorting, moisturisation and connected treatments and thereafter flock them on to the base fabric.
(2.) The Department has contended that since at the first stage the fibres are cut into lengths not exceeding 5 mm, therefore at that stage, an excisable product classifiable under 5601.00 comes into existence and therefore, an entry in RG-1 was required to be made; and it is this product which is subsequently used for producing the flocked textile which is another excisable product falling under 5906.11 or 5701.11 depending upon the base material etc.
They are contesting this view-point as well as the classification adopted by the Department in different proceedings. However, in so far as the present case is concerned the basic dispute is about the RG-1 point.
(3.) IT is their submission that RG-1 stage represents the stage at which the process of manufacture is complete. Therefore, it is required to be decided as to what constitutes the manufacture and when it is complete.;
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