9911796707
TMI Blog2003 (11) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per : S.L. Peeran, Member (J) (Oral)]. This appeal arises from Order-in-Original No. 36/2001 (Commr.), dated 20-9-2001 passed by the Commissioner of Central Excise, Coimbatore. The appellants are manufacturers of cotton yarn. They also procure raw material of cotton from local market as well as import from the foreign countries. The cotton yarn so manufactured were cleared to Domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the department proceeded to issue show cause notice on the ground that appellants had not maintained separate manufacturing unit for the purpose of utilizing domestic indigenous cotton for clearances through domestic area. On the said premise, the demands were confirmed. Hence this appeal. 2. Ld. Advocate submitted that the Commissioner has not applied Board s clarification issued time and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been arrived at. So also the penalty is not imposable under Rule 173Q as the said Rule applies to SRP unit under Chapter VII. He also submitted that their unit comes under Chapter V(A). Therefore, penalty is not imposable under Rule 173Q of Central Excise Rules. 3. Ld. SDR submitted that the appellants are required to maintain separate records batchwise for manufacture of goods in terms of imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of this circular, the authorities were required to see the fact that indigenous and imported items were separately used for manufacture and clearance. It was clearly directed that there was no need to have separate manufacturing line. However, as the departmental officers were continuing to commit mistake in the matter, a fresh circular was issued by Board vide Circular No. 85/2001-Cus., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained the records and accounted for the same. The appellant s contention that benefit of Notification No. 2/95 is required to be extended is required to be examined. The appellants have also taken a correct stand that penalty is not imposable under Rule 173Q as it applies to SRP unit under Chapter VII and the present clearances were under Chapter V(A). The impugned order is set aside and matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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