9911796707
TMI Blog1998 (6) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... r permission to remove the POY under sub-rule (2) of Rule 57F to its factory at Naroda, Gujarat for texturising and on such texturising to be cleared from that factory. The Assistant Collector, in the same month, granted permission. Appellant thereafter cleared the texturised yarn without payment of duty, and removed it to its factory at Naroda, where it was texturised. The bulk of such texturised yarn exported about 85% was under bond without payment of duty. Remaining portion was cleared on payment of appropriate duty for home consumption. By letter dated 4th December, 1992, the Assistant Collector informed the appellant that since the tariff entry in which polyester yarn fell was not specified in the Table to the Notification 211 of 1986 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty. Therefore, if payment of duty, on the POY is now insisted upon, it would amount to double payment of duty in respect of that quantity of texturised yarn which was cleared for home consumption. It is contended in this regard that both POY and texturised yarn are notified under the provisions of Rule 56A. Apart from the benefit of the notifications, the provisions of Rule 56A would be available. This would again require that duty paid is only once and not at two stages. 3. A related argument raised is that goods which are exported are not required to pay duty. There is specific provision for clearance of these goods without payment of duty under Rule 12(a), and for rebate of duty if paid under Rule 12. Clause (c) of sub-ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to be granted on the ground that the finished product has been exported, it is necessary to verify that such benefit does not extend to POY imported without payment of duty. 5. We first have to see whether notwithstanding the fact neither POY nor texturised yarn were notified under Rule 57A, the grant of permission by the Department had the effect of restraining it from recovering duty for the goods cleared without payment in terms of that permission. It was not disputed that the goods not being notified such permission could not have been granted in accordance with law. In Himadri Electrical Pvt. Ltd. v. C.C.E., the facts before the Tribunal were briefly as follows: The assessee manufactured electric fans. He also manufactured rotor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled of this permission. Subsequently the Department held that the tea in question was not a semi-finished product and hence permission under Rule 56B which is limited to semi-finished product could not be granted, and duty was demanded on the tea removed. The Tribunal held that the tea was validly cleared by the assessee under the permission granted under Rule 56B since the Department itself had considered the tea to be a semi-finished product. 7. The facts before us are quite different. Here there is no question of any trade notice having been issued by the Department supporting the permission granted or conclusion by the Department as to whether a particular produce is semi-finished or not. The POY in question was quite clearly not an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the benefit claimed by the advocate for the appellant is available (on which we expressed no opinion) it would, in any case, be limited to POY manufactured and cleared without payment of duty. Quantities imported under the DEEC scheme or otherwise without payment of duty will necessarily have to be excluded. This was one of the contentions raised by the advocate for the Commissioner. Further, co-relation is unavoidable to ensure that quantities of POY which were cleared without payment of duty were actually exported after being converted to texturised yarn. Therefore, co-relation between the POY cleared by the appellant and texturised yarn which is claimed to have been manufactured out of that has to be undertaken. Further, it has also to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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