9911796707
TMI Blog2000 (1) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... lates to the classification of the goods which the appellants claimed to be classifiable under Heading No. 52.02 while the Revenue sought to classify the same under Heading No. 52.03 of the Central Excise Tariff. Under show cause notice dated 2-2-1999, the demand of central excise duty of Rs. 29,95,738/- was made for the period June 1998 to December 1998. Penal provisions were also invoked. Penalty was also proposed to be levied on Shri M.S. Tyagi, Executive Director of the Company. The Commissioner of Central Excise, Bhopal, who adjudicated the matter observed that the flat strip waste generated from carding machine, comber noil waste generated from comber machine and roving waste generated from Ring Frame Machine were correctly classifiab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue related to the interpretation, he submitted that there was no justification to impose penalty. He, however, agreed that the provisions of Section 11AC were applicable during the relevant time. In reply, Shri R.S. Sangia, JDR, referred to para 15 of the impugned order-in-original on merits of the case. The limitation had been discussed in para 12 of the order. No invoices were issued and no prior permission had been obtained for removal. He pleaded that both on merits and on limitation, the matter had been correctly analysed by the adjudicating authority and that in the facts and circumstances of the case, both the demand for duty and the imposition of penalty were fully justified. 3. We have carefully considered the matter. The ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in any notification issued under sub-section (1) of Section 5A of the Act, no exemption therein was to apply to excisable goods which are produced or manufactured by a 100% EOU and allowed to be sold in India. Thus in spite of the tariff rate being nil, the duty could be levied on the goods manufactured by a 100% EOU and allowed to be sold in India. Under Notification No. 13/98-C.E., dated 2-6-1998, the finished products, rejects and wastes or scrap produced or manufactured in a 100% EOU wholly from the raw-materials produced or manufactured in India were exempted from so much of the duty of excise leviable thereon as was in excess of the amount calculated at the rate of 30% of such of the duties of customs which would be leviable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-6-1998 is promulgated. Under this Notification - the finished products, rejects wastes manufactured wholly out of indigenous raw materials and cleared in accordance with the provisions of sub paras (a) to (d) or (f) of para 9.9 and para 9.20 of the Exim Policy 1997-2002, will be charged to an amount of excise duty equivalent to 30% of the aggregate of the duties of customs, which would be leviable under Section 12 of the Customs Act, 1962, on the like goods produced or manufactured outside India, if imported into India. With the Notification No. 13/98-C.E., becoming effecting the changed, effective duty structure shall be as under : S. No. Description Duty which was applicable to Noti. No. 8/97-C.E. Effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of waste, then the same were classifiable under Heading No. 52.02. It is also seen from the Chapter Note that after the waste and garnetted stock had been carded, combed or otherwise processed for spinning they become classifiable under Heading No. 52.03. We find that there is no discussion about the actual nature of the goods cleared. The quantities cleared are substantial. In the various documents placed in the file, the price has been indicated from Rs. 29/- to Rs. 37/- per kg. At this price, it appears relevant to ascertain the nature of the goods cleared . It may also be appropriate to find out as for what purpose the goods so cleared were used. We, therefore, consider that this matter has to be remanded back to the jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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