9911796707
TMI Blog2000 (3) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in the show cause notice, dated 14-6-1994. 2. The facts of the case in brief are that the assessees are engaged in the manufacture of man-made yarn. On perusal of RT 12 returns submitted by the respondents, the department observed that the respondents had cleared 12,575.7 Kgs of PV blended yarn to M/s. Modern Suitings Limited without payment of duty. It appears that M/s. Modern Suitings Limited received duty free fibre under Rule 191BB for exporting man-made fabrics and supplied this fibre to M/s. Modern Syntex (India) Limited, Alwar for manufacture of PV blended yarn. The department alleged that since there was no exemption notification for availing duty exemption on the yarn so manufactured by M/s. Modern Syntex (India) Limited and, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove. 3. Arguing the appeal, Shri V.M. Udhoji, ld. JDR submits that the fibre was procured by M/s. Modern Suitings, advance licence holder, for manufacturing fabrics to be exported; that they supplied it to M/s. Modern Syntex (India) for manufacturing yarn; that under Rule 191BB only the articles (fabrics in this case) manufactured from the duty free raw materials (fibres) specified can be removed to other factory for completion of the manufacturing process; that Rule does not permit the removal of the raw material as such; that the yarn has been manufactured by M/s. Modern Syntex (India) from the fibres procured by M/s. Modern Suitings under Rule 191BB; that there is no notification exempting duty from yarn so manufactured. It was argued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the supporting manufacturer for manufacture of blended yarn; that he received the blended yarn back and converted it into fabrics and exported the fabrics. He submits that the fibre was obtained from the fibre manufacturer and sent to the supporting manufacturer of yarn after obtaining permission under Rule 191BB (4). He, therefore submits that there was nothing wrong or any violation of the procedure of the Rules in the instant case. He, therefore prays that the appeal may be rejected. 5. We have heard the rival submissions. We have also examined the requirement of Notification No. 33/90-C.E., dated 5-9-1990. This notification issued under Rule 191BB specifies the intermediate goods as goods whose removal from the place of manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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