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2000 (8) TMI 158 - AT - Central Excise
Issues Involved: Appeal against Order-in-Appeal dated 30-9-1999 passed by the Commissioner of Central Excise (Appeals), Jaipur regarding Rule 57F(4) and Notification No. 214/86-C.E.
Summary: In the appeal filed by the Revenue, the Appellate Tribunal considered the challenge against the Order-in-Appeal dated 30-9-1999. The Commissioner had set aside the impugned order, emphasizing the independence and self-contained nature of Rule 57 F(4) and Notification No. 214/86-C.E. The Tribunal noted that the two units were not separate and should be treated as one, leading to the allowance of the appeal. The case involved M/s. Noorani Textile Mills, Unit-2, Pali (Marwar), Rajasthan, receiving fabrics under Rule 57F(3) of the Central Excise Rules for bleaching and mercerising on a job work basis without payment of excise duty. The Advocate for the respondents argued that all processed goods were returned to Unit No. I, ensuring no loss of revenue as the Principal Unit undertook to pay the appropriate excise duty on goods received from Unit No. II. Reference was made to Circular No. 306/22/97-CX, clarifying Modvat Credit availability under Rule 57F(4). Acknowledging that goods were properly received and accounted for under Rule 57F(3) without any unauthorized clearance for home consumption, the Tribunal accepted the submission that all production was returned to Unit No. I for proper accountal and duty payment. Consequently, the appeal filed by the Revenue was rejected, affirming the view taken by the appellate authority.
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