1987 (7) TMI 412 - AT - Central Excise

Summary

Issues:
1. Maintainability of Revision Application under Section 35A.
2. Classification of "Yellow Pickings" as waste cotton or cotton waste for duty exemption.

Issue 1: Maintainability of Revision Application under Section 35A
The appeal was against the dismissal of a Revision Application by the Central Board of Excise and Customs. The Board dismissed the Revision Application on the grounds that Section 35A could not be used to bypass the three-month limitation for filing appeals under Section 35 of the Central Excises and Salt Act. The Board also noted that there was no apparent miscarriage of justice that needed correction through Section 35A. The appellants argued that the failure to file an appeal within the statutory limitation should not bar the filing of a revision application under Section 35A. The Tribunal found that the Board erred in holding the Revision Application as not maintainable. It highlighted that Section 36, which allows revision by the Central Government, requires that no appeal should lie from the decision or order being revised. In contrast, Section 35A, which provides for revision by the Board, does not have a similar stipulation. Therefore, the Tribunal set aside the Board's order and proceeded to decide the matter on merits.

Issue 2: Classification of "Yellow Pickings"
The key issue was whether "Yellow Pickings" should be classified as waste cotton or cotton waste for the purpose of duty exemption. The Collector had determined that "Yellow Pickings" were not cotton waste, leading to the denial of duty exemption for the cotton yarn manufactured from them. However, the Tribunal referred to a previous decision where it was found that cotton yarn manufactured from "Yellow Pickings" was eligible for duty exemption. Relying on this precedent, the Tribunal ruled that the cotton yarn produced by the appellants from "Yellow Pickings" was indeed entitled to duty exemption. Consequently, the penal action and duty demand imposed on the appellants were set aside, and the appeal was allowed.

In conclusion, the Tribunal held that the Revision Application under Section 35A was maintainable and proceeded to grant duty exemption to the cotton yarn manufactured from "Yellow Pickings." The decision was based on the classification of "Yellow Pickings" as cotton waste, following a previous ruling in a similar matter.