COMMNR. OF CENTRAL EXCISE, JALANDHAR vs M/S. RAJIV TEXTILE INDUSTRIES

The Supreme Court held that the goods manufactured by the respondent Textile Mills were correctly classifiable under Chapter 52 of the Central Excise and Tariff Act, 1985, rather than under sub-heading 5911.90, which was subject to excise duty. This decision followed the precedent set by the larger Bench in Jyoti Overseas Limited Vs. CCE, Indore, which overruled the earlier ruling in M/s. Simplex Mills Co. Ltd. The Court dismissed the appeals of the Revenue Authorities, affirming the Tribunal's decision that the products were exempt from excise duty.