- (1.) THE Facts : M/s. Versatile Enterprises Pvt. Ltd. (the Assessee) is a job worker. The Assessee receives 'unprocessed grey pile fabrics. It is put through the processes of pile opening (if required), back coating, and pile cutting & polishing. After this, the resultant commodity (the goods) are measured and packed. The question is, is the Assessee manufacturing; is it liable to pay excise duty under the Central Excise Act, 1944 (the Act).
(2.) THE Assessee filed a declaration of classification with effect from 15 -5 -1995 under sub -heading 6001.11 and 6001.12 of the Central Excise Tariff Act, 1985 (the Tariff Act). The goods of the Assessee were approved under sub -heading 6001.12 and were charged to duty @ 10% under Notification No. 47/95 dated 16 -3 -1995. Subsequently, the Assessee filed a representation dated 8 -11 -1995 and requested that the commodity be treated as exempt from the excise duty as the processes undertaken by it did not amount to manufacture.
(3.) THE adjudicating officer by his order dated 21 -3 -1996 held that the excise duty @ 10% was leviable on the goods.;