9911796707
TMI Blog1992 (3) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... mbay. The facts, in brief, are as follows : 2. M/s. Raymond Woollen Mills, Thane (hereinafter called as assessee) are manufacturing worsted woollen hand knitting yarn falling under Tariff Item No. 18B of CET. They were also receiving duty paid grey woollen yarn under Rule 56A from outside factories and after subjecting it to processing they were clearing the same on payment of duty. As per Notification No. 237/76, dated 30-8-76 the worsted woollen hand knitting yarn was exempted from so much of excise duty as in excess of 20% Adv. provided that, in respect of worsted hand knitting yarn held in stock by a manufacturer on 30th Aug., 1976 and cleared on or after that date, a set off to the extent of excise duty already paid on wool tops fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to the party to produce duty paying documents in respect of wool tops but in spite of several reminders sent to the party, they could not produce such evidence and ultimately could not establish that, the yarn lying in stock, in the RG 23 was manufactured out of duty paid wool tops. Accordingly, the Assistant Collector, as per order dated 7-6-83, rejected the refund claim filed by the party. 6. Being aggrieved by the aforesaid order of the Assistant Collector, the assessee filed the appeal with the Collector (Appeals) and also obtained order from the High Court that refund claim has to be decided by the Assistant Collector in accordance with the law. In view of High Court decision, the Collector (Appeals) also dismissed the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not available when the end-product was exempt. 9. Shri R.A. Kanodia, Purchase Manager of M/s. Raymond on the other hand contended that they had sent their own duty paid wool tops to job workers to be spun into grey yarn and that the processed yarn cleared from their factory was thus made out of duty paid wool tops only and that their eligibility for the set off has been upheld by Collector (Appeals) even earlier in an order dated 11-3-77 which has been further confirmed in the impugned order of Collector (Appeals) and it was further pleaded that in passing the order in de novo proceedings dated 16-2-84 the Assistant Collector had overstepped the terms of the remand order. He also assailed the Collector (Appeals) order that no refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , from so much of the duty of excise leviable thereon as is in excess of twenty per cent ad valorem. Provided that in respect of worsted woollen hand knitting yarn held in stock by a manufacturer on 30th August, 1976, and cleared on or after that date, a set off to the extent of excise duty paid on wool tops falling under Item No. 43 of the said Schedule, shall be allowed if it is proved to the satisfaction of the proper officer that the yarn was manufactured out of duty paid wool tops. 11. From a perusal of the notification, it is clear that the set off, therein, is conditional upon the proper officer being satisfied that the yarn was manufactured out of duty paid wool tops. Here it is the admitted position that the grey yarn has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfy him, that the yarn lying in stock is made out of duty paid wool top. The Assistant Collector has expressed his non-satisfaction in his order as follows, In the present case, it is fact that M/s. Raymonds had cleared wool tops to the aforesaid spinners and these spinners had manufactured grey yarn out of the wool tops. The grey yarn so manufactured by them, was cleared by the spinners on payment of duty to M/s. Raymond who processed it further and cleared it on payment of duty after availing themselves of the proforma credit in respect of the duty paid on the grey yarn. This position clearly shows grey yarn (under T.I. 18B) had come into existence from wool tops (under T.I. 43) what was received by M/s. Raymond was a duty paid produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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