1996 INSC 0035
                                        SUPREME COURT OF INDIA

                                           Bombay Fibre Industries Ltd.

                                                           Vs.

                                      Collector of Central Excise, Bombay

                                        (A Ahmadi and S V Manohar JJ.)

                                                      05.01.1996

                                                       ORDER

1. This appeal is directed against the order of the Customs, Excise and Gold (Control) Appellate
Tribunal dated 17-5-1995. The question for consideration was whether garneting, i.e., the process of
recovering fibres from hard twisted thread, washing, sorting, cutting, carding, orientation of fibres
and combing amounts to manufacture. The Tribunal has answered the question in the affirmative
departing from its earlier view which it seems to have omitted to notice. It has also omitted to notice
the Board's Circular No. 40/2/95-CS dated 13-1-1995 wherein it is stated:

"The Board is, therefore, of the view that the process of garneting and/or carding of duty-paid waste
of filaments/waste of staple fibres falling under Chapters 54 and 55 of the Schedule to the Central
Excise Tariff Act, 1985 do not amount to manufacture within the meaning of Section 2(f) of the
Central Excises and Salt Act, 1944."

In view of the same it seems obvious that the order of the Tribunal requires reconsideration. We,
therefore, set aside the impugned order of the Tribunal and remit the matter back to the Tribunal for
disposal in accordance with law after hearing the counsel for the parties. There will be no order as
to costs.