Central Excise Exemption Denied: Integrated Manufacturing Process Cannot Be Split Due to Separate Units

Commissioner of Custom Vs Narsibhai Karamsibhai Gajera & Ors. (Supreme Court of India) Power Used Anywhere in Chain, Exemption Lost — Units Cannot Break Up Manufacturing to Claim “No-Power” Benefit-Continuous Process Test Reaffirmed: CESTAT Erred in Splitting Integrated Fabric Processing, Says Supreme Court The Supreme Court set aside the CESTAT order & restored the Commissioner’s Order-in-Original dated 27-09-2006. The controversy centred on whether cotton fabrics processed by Unit No.1 were eligible for exemption u/s Entry 106 of Notification No.5/98-CE which applied only whe...