2007 (8) TMI 606 - AT - Central Excise

Summary

Issues involved:
Confirmation of Central Excise duty based on the length of fabrics embroidered by a machine with two rollers.

Detailed Analysis:

1. Confirmation of Central Excise Duty:
- The appeal was against an Order-in-Appeal confirming Central Excise duty based on the length of fabrics embroidered by a machine with two rollers.
- The Revenue argued that duty should be demanded from the first needle of the first roller to the last needle of the second roller, resulting in double the production being considered for duty calculation.
- Previous decisions by the Tribunal in cases like Samir Textiles (P) Ltd., Doshi Industrial Corporation, and Vadilal Embroidery Unit were cited, where it was held that the duty should be based on the length of one roller only, not both, as per Rule 96ZI.
- The Division Bench in the case of Vadilal Embroidery Unit dismissed the Revenue's appeal, emphasizing that the duty liability should be compounded based on the length of one roller of the embroidery machine.
- Similarly, in the case of Samir Textile Pvt. Ltd., it was held that the duty should be calculated based on the length of one roller only, as clarified by the Ministry of Finance and the Government of India.

2. Judgment and Decision:
- The Tribunal found that the issue was already settled in favor of the appellant based on previous decisions and clarifications regarding the definition of "meter length" for embroidery machines.
- Consequently, the impugned order confirming the duty based on the length of both rollers was set aside, and the appeal was allowed in favor of the appellant.
- The Tribunal held that the duty should be calculated based on the length of one roller only, as per the clarification issued by the Government and the Ministry of Finance.

3. Conclusion:
- The Tribunal's decision was based on the interpretation of Rule 96ZI and previous clarifications regarding the duty calculation for embroidered fabrics produced by machines with two rollers.
- By setting aside the impugned order and allowing the appeal, the Tribunal upheld the principle that duty liability should be based on the length of one roller of the embroidery machine, not both, as per the relevant legal provisions and clarifications provided by the authorities.

This detailed analysis of the judgment highlights the key issues, legal interpretations, and decisions made by the Appellate Tribunal CESTAT, Mumbai regarding the confirmation of Central Excise duty for fabrics embroidered by machines with two rollers.