9911796707
TMI Blog2000 (3) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... briefly be stated as under : 3. The respondents are engaged in the manufacture of woolen yarn falling under Chapter 51 of the Schedule annexed to the Central Excise Tariff Act, 1985. On scrutiny of the documents furnished by them along with R.T. 12 returns, it revealed that they had cleared the woollen yarn in plain straight reel hanks falling under sub-heading 5103.10 of the schedule to Central Excise Tariff Act of the quantity detailed in the impugned order itself and did not pay any Central Excise Duty under Notification No. 90/94-C.E., dated 25-4-1994. They were accordingly served with four show cause notices. Two show cause notices one dated 30-11-1994 for the month of May, 1994, and another dated 30-12-1994 for the month of June, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emoval, in terms of Rule 9 of the Rules and that the exemption under Notification No. 26/94-C.E., dated 1-3-1994 will be available to such resultant yarn. They further alleged that since the yarn had been cleared by them in the form of plain reel hanks, they are entitled to the benefit of Notification No. 26/94-C.E., dated 1-3-1994, as amended by Notification No. 90/94-C.E., dated 25-4-1994 which prescribed nil rate of duty on the clearance of that yarn. 5. The Commissioner who adjudicated all the above four show cause notices accepted the defence of the respondents and by relying on the Trade Notices No.70/94-C.E., dated 7-6-1994 and 112/94-C.E. dated 15-12-1994 and the Notification No. 26/94-C.E., dated 1-3-1994 as amended by Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 18-12-1994 not only fixed the RG.1 stage of the woolen yarn alongwith other excisable commodity but also made it clear that single yarn if subjected to the processes mentioned in Chapter Note I of Chapter 52 within the factory will get the benefit of Notification No. 121/94, dated 11-8-1994 and the duty will be payable only on the resultant yarn at the time of its removal in terms of Rule 9 of the Rules. The respondents, admittedly removed from the factory woollen yarn in the form of plain reel hanks. They duty, if any, payable was, therefore, to be discharged by them at that stage only. Since the Notification No. 26/94-C.E., dated 1-3-1994 as amended by Notification No. 90/94-C.E., dated 1-3-1994 as amended by Notification No. 90/94-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yarn falling under Chapter 51 of the schedule to the Central Excise Tariff Act issued Trade Notice No. 70/94-C.E., dated 7-6-1994 fixing the RG.1 stage of some of the excisable commodities and woollen yarn was one of them. For these, the RG1 stage was fixed at of the spindle stage-single yarn stage (countwise). All the manufacturers of the yarn were required under this Trade Notice to enter their production in the RG1 register in order to ensure proper accountal of the yarn manufactured by them. Thereafter, another Trade Notice No.112/94-C.E., dated 18-12-1994 was issued by this very Commissionerate vide which it was further clarified that since removal in terms of Rule 9 did not take place when single yarn was taken for subjecting it throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the department have to be consistent with the circulars. The whole object of the circulars issued by the department is to adopt a uniform practice and to inform the trade as to how a particular product will be treated for the purposes of excise duty and consistency and discipline are of far greater importance than winning or losing Court proceedings . The Commissioner has, therefore, rightly by relying on these Trade Notices allowed the benefit of exemption Notification No. 26/94-C.E., dated 1-3-1994 as amended by Notification No. 90/94-C.E., dated 25-4-1994 which prescribed nil rate of duty for woollen yarn cleared in form of plain reel hanks, to the respondents. Moreover, the Notification No. 26/94-C.E., dated 25-4-1994 did not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner. This fact is quite evident from the copy of the order placed on record by the respondents. The order of the Commissioner passed in those cases was never challenged by the Revenue. 14. It is well settled that the law has to be administered with even handed, amongst the persons evenly placed. Therefore, there exists in our view no sufficient cause or ground for the Revenue when they had already allowed the benefit of the above referred Trade Notices and the Exemption Notification, to other 23 manufacturers of the woollen yarn, placed in similar circumstances, to discriminate with the respondents and to deny the benefit of the same to them. 15. In the light of the discussion made above, the impugned order of the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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