9911796707
TMI Blog1998 (9) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... lant or not. The authorities below seek to charge duty on the said goods under Notification No. 255/89-C.E., dated 8-11-1982 (as amended). 1.3 In order to appreciate the contention of the Revenue and that of the appellants we reproduce the said notification :- The Central Government hereby exempts cotton fabrics falling under sub-heading 5805.13 of the Central Excise Tariff Act, 1985 from so much of the duty of excise leviable thereon under the Central Excises Act at the rate specified in the said Schedule, as is in excess of the amount calculated at the rate of - (a) The duty of excise leviable on the base fabrics under the Central Excise Tariff, if not already paid; and (b) seven per cent ad valorem on such cotton fabrics : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abric. This liability, she further submits, appears to have been discharged already as observed in the impugned order when the lower appellate authority has observed as follows :- Grey cotton fabrics duly embroidered were received in the factory of the appellants for processing only after already having discharged its duty liability before receipt. With this observation there is no other duty liability on the goods and therefore, no duty can be claimed from the appellants. She, therefore, prays for allowing the appeal in so far as the appellants are concerned. 3.1 Opposing the contention, learned SDR, Shri A.K. Agarwal reiterates the findings of the lower authorities. Learned SDR further submits that after the process of dyeing und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants is correct that no duty liability devolves on the appellant although there may still be duty liability on the fabrics depending on the fact that embroidered cotton fabric has discharged duty liability or not. But this liability also becomes doubtful in view of the observations of the lower appellate authority, as pointed out by the learned Advocate and as extracted above. In any case this is a question of fact to be determined on the basis of the fact whether embroidered cotton fabric at grey stage has discharged duty liability or not. In any case, as we have already found that no duty liability devolves on the appellants, appeals are allowed after we set aside the impugned order with consequential relief to the appellants. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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