2008 (12) TMI 517 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, New Delhi, with Ms. Jyoti Balasundaram and Shri M. Veeraiyan presiding, heard an appeal regarding the confirmation of payment of Rs. 19,86,471 with interest on Nylon Chips in the manufacture of Nylon Yarn Filament. The Commissioner of Central Excise (Appeals) upheld the payment and penalty imposed. The Tribunal acknowledged the dutiability of Nylon Chips based on previous decisions. However, the appellant was found eligible for exemption under Notification No. 67/95-C.E., requiring re-credit of Rs. 15,19,845. On the issue of valuation, the Tribunal directed the adjudicating authority to re-determine the value of Nylon Chips based on the costing method. The case was remitted for this purpose. The Tribunal set aside the penalty, pending finalization of the duty demand. Interest under Section 11AB would be limited to the re-determined duty liability. The appeal was disposed of accordingly on December 29, 2008.