2000 (11) TMI 577 - AT - Central Excise

Summary

Issues:
Challenge to validity of Order-in-Appeal affirming duty payment on doubled yarn instead of single yarn stage.

Analysis:
The appellants contested the Order-in-Appeal affirming duty payment on doubled yarn instead of the single yarn stage, challenging the duty demand of Rs. 58,011. The Commissioner (Appeals) upheld the duty liability at the single yarn stage based on the law set in C.C.E. v. Banswara Syntex Ltd., applying a waste percentage of 0.35% to determine the weight of single ply yarn for duty levy. The appellants disputed this decision in their appeal.

The appellants argued that the Commissioner (Appeals) should have remanded the case to the Assistant Commissioner for readjusting the duty amount already paid on doubled yarn, as observed in paras 4(5) and 8 of the impugned order. The appellants contended that they were entitled to an adjustment of the duty paid on doubled yarn when determining their duty liability at the single yarn stage. The Commissioner (Appeals) failed to consider this and dismissed the appeal, leading to the appeal challenging the Order-in-Appeal.

Upon review, the Appellate Tribunal found that the Commissioner (Appeals) erred in not remanding the case for redetermining the duty liability after allowing the adjustment of duty already paid on doubled yarn. The Tribunal set aside the Order-in-Appeal and directed the matter back to the adjudicating authority for determining the duty liability in accordance with law and considering the duty already paid by the appellants. The appeal was disposed of by remand for a proper assessment of duty liability.