COLLECTOR OF CENTRAL EXCISE, BOMBAY versus MAHARASHTRA FUR FABRICS LIMITED

Citation: [2002] SUPP. 2 S.C.R. 544 · Decided: 24-09-2002 · Supreme Court of India · Bench: S.S.M. QUADRI, Y.K. SABHARWAL · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
B 
COLLECTOR OF CENTRAL EXCISE, BOMBAY 
v. 
MAHARASHTRA FUR FABRICS LIMITED 
SEPTEMBER 24, 2002 
(SYED SHAH MOHD. QUADRI AND Y.K. SABHARWAL, JJ.] 
Central Excise Tariff Act, 1985: 
Schedule-Heading No. 60.01-Assessee manufacturing high fur fabrics 
C by silver knitting process-Item classified by assessee under Heading 60.01-
Exemption from excise duty claimed under Notification No. 10911986-C.E. 
dated 27.2.1986 as amended by Notification No. 311988-C.E. dated 
19. I. 1988-Proviso to Notification excluding silver pile fabrics falling under 
Heading 58. 0 l or 60. 0 I if the product is subjected to process of bleaching, 
D dyeing, printing, shrink proofing, /entering, heat-setting, crease-resistant 
processing or any other process-Assessee 's stand that the item had to be 
dried by merely passing it through hot air stenter, the process did not amount 
to stentering-Tribunal upholding the claim of assessee-Held, the process 
adopted by the assessee is analogous to stentering as, admittedly, the fabric 
is dried by passing it through hot air stenter-Applying the rule of ejusdem 
E generis the words "or any other process" would have to be understood in 
the same sense in which the process including /entering would be 
understood-Thus a process akin to stentering/tentering would fall within 
the meaning of the proviso and the benefit of the Notification cannot be 
availed by the respondent-Interpretation of Statutes-Principle of ejusdem 
F generis. 
G 
H 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 685of1995. 
From the Judgment and Order dated 29.4.1994 of the C.E.G.A.T. in Order 
No. EJ254!95-D in Appeal No. E/4217/90-D. 
K. Swami,· K.C. Kaushik and B. Krishna Prasad, for the Appellant. 
·Joseph Vellapally, Rajan Narain, Ms. Sonu Bhatnagar and Ajay Aggarwal 
for the Respondent. 
The following Order of the Court was delivered : 
544 
C.C. ~· v. MAHARASIHRA FUR FABRICS LTD. 
545 
This appeal is filed by th~ CQll11ctor of Central Excise, Sombay against A 
the order, No. E/254/94-D, oflhll Customs, Excise and Gold (Control) Appellate 
Tribunal in Appeal No, !;;/4217190·0 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, aff11111ing 
the order of the Assistant Collector holding that the respondent is entitled 
to the benefit QfNotiflcation No, 109/1986-C.E. dated 27th February, 1986, as B 
amended by Notification No. 3/1988-c.E. dated 19th January, 1988 (for short, 
'the Notification'), 
The question th11t arises for consideration is: whether the respondent 
is cover11d by the proviso inserted in the notification? 
C 
The respondent-assessee manufactures high fur fabrics by silver knitting 
process. In Classification List No. 1/1987 dated I 0th March, 1987 filed by the 
respondent, t.he 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 D 
notification till 19th January, 1988 when the proviso was inserted therein. 
It would be useful to read Notification No. I 09/1986-C.E. dated 27th 
Fabruary, 1986, as amended by Notification No. 3/1988-C.E. dated 19th January, 
1988 here: 
"In exercise of the powers conferred by sub-rule (I) 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 
E 
(58 3f 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 F 
Central Excise Tariff Act, 1985 (5of1957) 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, S4 or 55 of the said Schedule, read with any notification for 
the time being in force. 
G 
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 H 
546 
SUPREME COURT REPORTS (2002] SUPP. 2 S.C.R. 
A 
two or mor

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