9911796707
TMI Blog1999 (10) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... nd cleared by the appellant are includible in the first clearance of Rs. 30 Lakhs under Notification No. 1/93, dated 28-2-1993. Further on scrutiny of the records it has been noticed that the appellant had started paying duty on clearance of the above said HDPE woven fabric is included in the first clearance of Rs. 30 Lakhs, the appellant would have crossed his limit on 8-8-1993. This fact that the appellant had availed the full exemption of Rs. 30 Lakhs had come to the notice of the Department when the RT 12 return of August, 1993 was submitted in September, 1993. Therefore the demand show cause notice issued on 3-3-1994 is within time limit as prescribed under Section 11A of the Central Excises Act, 1944. Accordingly I hold that the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computing the value of clearance of Rs. 30 Lakhs for exemption under Notification No. 1/93. A SCN was issued to the appellants asking them to explain as to why the duty amounting to Rs. 1,12,330.35 should not be recovered from them. 3. In reply to the SCN, the appellants submitted that they had removed semi-processed goods to job worker for further processing; that after completion of job work, the job worker sent the goods on original challan which in turn were further processed by the appellants; that the goods then cleared under Notification No. 1/93; that since the appellants did not avail Modvat credit, grant of permission under Rule 57F(2) was not required; that the exemption on processed goods i.e. fabrics manufactured on job work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in their case, laminated fabrics manufactured out of HDPE fabrics on job work basis used in the manufacture of fabrics pcs/sacks within the factory of production of inputs, therefore, the value of HDPE is not includible in the aggregate value of clearances of Rs. 30 Lakhs. 6. After careful consideration of the submissions, the Addl. Commissioner confirmed the demand of duty amounting to Rs. 1,12,330.35 and also imposed a penalty of Rs. 5,000/-. On appeal, Commissioner (A) decided the issue as indicated above. 7. Shri R.L. Mehta, ld. Advocate submits that the appellants had been availing of Notification No. 1/93; that they continued to clear semi-finished goods as before for the purpose of undertaking job work; that the quantity of 6, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation VI; that the authorities have applied Explanation VI. Ld. Counsel submits that HDPE fabrics which are sent for lamination are exempted from the whole of duty of excise leviable thereon under Notification No. 214/86 and, therefore clearance of HDPE fabrics for the purpose of job work of lamination would be covered by second part of Explanation II. He, therefore submits that in view of the Explanation II and VI, the demand needs to be set aside and prays that the appeal may be allowed. 9. Shri Ravinder Babu, ld. JDR submits that the Commissioner in the impugned order had examined the issue of applicability of nil rate of duty or exemption from the whole of duty to HDPE woven fabrics. He reiterates the findings of the authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, the clearances of any excisable goods which are chargeable to nil rate of duty or which are exempted from the whole of duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value of quantity made in a financial year) issued under sub-rule (1) of Rule 8 of the said Rules [or sub-section (1) of Section 5A of the Central Excises Act, 1944 (1 of 1944)] shall not be taken into account. On examination of this Explanation vis-a-vis the goods, we note that the goods were exempted under Notification No. 214/86. We also note that this notification was issued under Section 5A of the Act. We also find that if the goods were ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
