2003 (6) TMI 249

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..... r : Gowri Shankar, Member (T)]. The appellant is engaged in the manufacture in its factory at Thane of polyester staple fibre out of tow also manufactured in the same factory from mono ethylene glycol. It cleared the fibre either on payment of duty, or without payment of duty for export or under Rule 191BB, goods to be exported and part in terms of exemption contained in Notification 191/85 .....

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..... oper procedure. The Commissioner confirmed the proposal, applied the extended period of limitation and imposed a penalty. Hence this appeal. 2. After hearing the counsel for the appellant and the departmental representative, we find the fibre removed to make goods to be exported or exported as such would not be liable to duty. In its decision in Reliance Industries Ltd. v. CCE - 1999 (112) E.L.T .....

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..... ued as raw material, in the manufacture of fibre, the benefit of the proviso would be available to it. 3. The departmental representative, despite his best efforts, is not able to justify the applicability of the extended period with regard to tow. The notice dated 23-9-1988 issued to the appellant in fact specifically demanded duty on entire quantity of tow utilised in the manufacture of staple .....

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