2007 (6) TMI 380 - AT - Central Excise

Summary

Issues involved: Appeal challenging order of Commissioner (Appeals) u/s 11A of the Act regarding payment of excise duty on single yarn used in manufacturing doubled yarn.

Summary:

Issue 1: Challenge to Commissioner's order discharging show cause notices u/s 11A of the Act.
- The Revenue appealed against the Commissioner's order based on the decision of the Hon'ble High Court of Jammu & Kashmir.
- The Commissioner discharged show cause notices questioning duty payment on single yarn used in manufacturing doubled yarn.
- The duty liability was to be discharged at the time of removal of goods based on assessable value u/s 4 of the Act.

Issue 2: Interpretation of Notifications affecting duty payment on yarn.
- A Writ Petition brought the matter before the High Court, which allowed the petition based on relevant Notifications.
- Notifications dated 25-4-1994, 18-5-1995, and 16-3-1995 impacted duty exemption for yarn manufacturing.
- Circular clarified that exemption for integrated units producing single yarn was denied from 18-5-1995.

Issue 3: Hearing and decision on the appeal.
- Respondent did not attend the hearing due to prior commitments.
- Departmental Representative clarified that challenge was only for show cause notices post 18-5-1995.
- The High Court's decision favored the Respondent's exemption eligibility before 18-5-1995.
- Appeal dismissed as show cause notices post 18-5-1995 did not mention the proviso affecting exemption.

In conclusion, the appeal challenging duty payment on single yarn used in manufacturing doubled yarn was dismissed by the Appellate Tribunal CESTAT, New Delhi, based on the interpretation of relevant Notifications and the High Court's decision regarding exemption eligibility.