2003 (1) TMI 764 - AT - Central Excise

Summary

Issues: Interpretation of duty demand for yarn based on sample testing results.

The appeal by Revenue challenges the Order-in-Appeal confirming duty demand for yarn based on sample testing results. The Ld. Commissioner relied on the judgment of the Hon'ble High Court of Judicature at Madras in Cambodia Mills Ltd. case. The Appellant argues that prior judgments by Madras High Court and A.P. High Court support periodic sample testing governing production until the next sample draw. Reference is made to the case of Ramalinga Choodambikai Mills Ltd. v. GOI, Bojraj Textile Mills Ltd. v. AC, and GOI in the Chirala Co-op. Spinning Mills Ltd. The Tribunal's decision in Pirakahs Cotton Mills Pvt. Ltd. is also highlighted, stating the test report's validity until the next sample draw.

Advocate Shri M.V. Raman cites the judgment in Superfil Products Ltd. v. CCE, Chennai, emphasizing that duty should be imposed only on yarn produced on the day of sample testing, not for the entire month. This decision aligns with the Madras High Court's ruling in CCE, Coimbatore v. Cambodia Mills Ltd. and SRF Ltd. v. CCE, Chennai. Consequently, the appeal by Revenue is urged to be dismissed, and the Ld. Commissioner's order is requested to be upheld. The Bench, considering the arguments from both sides and previous judgments, including its own ruling in Superfil Products Ltd. case, affirms the duty demand based on the sample testing results, in line with the judgments of the Hon'ble High Court of Judicature at Madras in Cambodia Mills Ltd. case. Thus, the appeal by Revenue is rejected, and the Ld. Commissioner's order is upheld.