9911796707
TMI Blog1997 (2) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... yarn. The Respondents claimed exemption, but the department took the view that some quantity of polymide chips went into the waste yarn, and as such the exemption is not available for polymide chips going into Nylon waste. The Jurisdictional Assistant Commissioner of Central Excise Kalyan-I Division confirmed the demand for Rs. 1,00,01,278.43. The Assistant Commissioner in the order however, took the view that there has been suppression of facts by the Respondents, and the invoked longer period for demanding duty under Section 11A. The Commissioner (Appeals) in the impugned order held that the department cannot do so. He also held on merits that the exemption notification cannot be read in the narrow limited scope as has been done by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . J.K. Cotton Spinning and Weaving Mills Co. Ltd.. Reliance was also placed on the Allahabad High Court Judgment in the case of Varuna Sulphonators Pvt. Ltd. v. Union of India - 1993 (68) E.L.T. 42 (All.). The ld. Counsel further cited the decision of Supreme Court in Union of India v. Wood Papers Ltd. - 1990 (47) E.L.T. 500 (S.C.) which lays down that exemption notification is to be strictly interpreted to see whether the item falls within the ambit of the exemption and once it falls within the coverage of notification, a liberal interpretation is to be given. On limitation also the ld. Counsel cited the Supreme Court decision in the case of Collector of Central Excise v. H.M.M. Limited - 1995 (76) E.L.T. 497 (S.C.) to say that from a mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the particulars to the present case since the polymide chips in this case have been put to use in the manufacture of Nylon yarn it can be said that the subject falls within the ambit of the notification having crossed this hurdle. A liberal interpretation will be justified to say that the exemption cannot be denied on the ground that a portion of the polymide chips is contained in the waste. In this context the Supreme Court decision in the case of Swadeshi Polytex Ltd. v. Collector of Central Excise - 1989 (44) E.L.T. 794 (S.C.) which was cited and followed by the Allahabad High Court in Varuna Sulphonators Pvt. Ltd. (supra) is also relevant. In that case Notification No. 201/79 which give set-off of duty for input was under consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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