Cir. No.184/18/1996-CX, dt. 11/03/1996
- Document type
- Circular
- Reference no.
- C
- Dated
Denim Fabrics excisability
I am directed to invite your attention to notification No.40/95-CE dated 16.3.95 which provides for exemption to woven fabrics of cotton when subjected to certain specified processes. The notification also provides that "calendering" shall include processing of cotton fabrics with the aid of zero-zero machine without a stenter attachment.
2. In the context of the above notification, it has been reported that some manufacturers of denim fabrics have claimed exemption under this notification on one ground or the other. It has also been claimed that the machine used by them is zero- zero machine and it does only calendering of grey fabrics and shrinking is only incidental. The departmental authorities have, however, not accepted the contention of the assessees though the assessees have disputed them. In order to set all doubts at rest, it has been considered desirable to amend the notification so as to make is explicitly clear that the exemption under the aforesaid notification is not applicable to denim fabrics. Accordingly, notification No.4/96-CE dated 4.3.96 has been issued to insert an explanation in notification No.40/95-CE. The explanation excludes the applicability of exemption to denim fabrics-both on the ground of marketability of the product as also on the ground of technical specifications.
3. The explanation is only clarificatory in nature and it is the department"s view that even otherwise notification No.40/95-CE is not applicable to denim fabrics.
Sd/-
(Tarun Kumar Govil)
Under Secretary to the Government of India