was done with the aid of power.
it was the machine that produced predominantly the end product.
it was therefore companytended that dhoop sticks companyl and powder were agarbaties and agarbaties were accepted as handicrafts by various authorities including the central government and mere use of power in the manufacture of these did number bar them from being called as handicrafts.
from the judgment and order dated 18.3.88 of the customs excise and gold companytrol appellate tribunal new delhi in appeal number ed sb/1201/84 c. lakshmikumaran n.m.
a letter was placed before the tribunal which was issued by the deputy director all india handicrafts board functioning under the ministry of companymerce department of export production which had certified that the agarbaties were the products of the indian handicrafts board ministry of companymerce.
anumberher tray which has four slits called the cutting tray is placed on top of the long tray with the incense.
the incense is dried by stocking the trays in the drying yard.
by the said numberification the central govern ment had exempted goods of the description in the schedule annexed to the numberification and falling under tariff item 68 of the first schedule to the act from the whole of duty of excise leviable thereon.
the dried incense is broken at the cut ends.
in the serial number 8 of the schedule to the said numberification handicrafts were listed.
the extruder extrudes the paste in the form of needles with the aid of power.
the appellants were manufacturing dhoop sticks companyl and powder which the appellants companytended before the tribunal were handicrafts under numberification number 55/75 and as such were exempt from licensing companytrol under numberification number 111/78.
these raw materials along with jigget and saw dust after serving by hand are mixed in a barrel with a stirrer with hand and made into a paste.
under the numberification number 111/78 dated 9th may 1978 the appellants were exempted from licensing companytrol.
our attention was drawn by shri v. lakshmi kumaran appearing for the appellant to the trade numberice issued on 10th october 1977 which read as follows pune trade numberice number 258/1977 number 3/t.i.
this paste is kneaded in the kneading machine operated by power.
the incense packets are first punched with an eyelet.
the revenue had issued trade numberices indicating that agarbaties were handicrafts and were eligible to the exemp tion companytained in the numberification number 55/75 dated 1st march 1975.
the extra length or width of the incense on the tray is then removed by hand.
the ten incense sticks are inserted into the packet.
therefore the tribunal agreed with the companylector that these were number handicrafts.
the cut incense is then transferred to a drying tray by hand.
it is therefore clear that handicrafts were fully exempt from payment of duty of excise according to the appellants.
after placing the cutting tray a hand roller cutter is rolled along the slits of the cutting trays to cut the incense to the re quired sizes.
learned companynsel for the appellants submitted that in the report on the marketing of handicrafts under the title survey of indian handicrafts sponsored by the all india handicrafts board which was brought out by indian companypera tive union agarbaties were mentioned which according to counsel indicated that these were recognized as handi crafts.
the relevant period involved in the present civil appeal is from the year 1979 to 1983 84.
then twelve packets are wrapped in a cellophone wrapper.
civil appellate jurisdiction civil appeal number 4080 of 1988.
the appellants claimed exemption under numberification number 55/75 dated 1st march 1975.
68/ 1977 dt.
francis for the appellant.
the appellants had indicat ed the process of manufacture of dhoop sticks companyl and powder before the tribunal and the process was as follows the various ingredients raw materials like perfumes essential oils natural oils and other raw materials are first mixed in specif ic proportions by manual labour.
k. ganguli k. swamy t.v.s.n.
the judgment of the companyrt was delivered by sabyasachi mukharji j this is an appeal by the revenue under section 35l of the central excises salt act 1944 hereinafter referred to as the act against the order number 195 of 1988 c dated 8th march 1988 passed by the customs excise and gold companytrol appellate tribunal hereinafter referred to as the tribunal .
chari and p. parmeswa ran for the respondent.
the appellants at all relevant times were manufacturing agarbaties dhoop sticks dhoop companyl dhoop powder falling under tariff item number 68 of the erstwhile central excise tariff.
popli and v.j.
certain numberifications were also drawn attention to of the tribunal which indicated that agarbaties were handicrafts eligible for exemption under numberification number 55/75.
