2005 (2) TMI 698

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..... rder (Oral)]. - The appeal is directed against duty demand of about Rs. 6.00 lakhs and Rs. 1,000/-, imposed as penalty. The appellant is a cotton yarn manufacturer. It received fibre for that purpose from another party. It converted the fibre into yarn and returned the yarn so manufactured to the sender of the fibre. The work was undertaken on job charge basis. The appellant did not discharge an .....

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..... rom one factory to another without payment of duty" [emphasis supplied]. The Rule provides that 'yarn' may be removed "without payment of duty from one factory to another". In the face of this legal position, the duty demand made in the present order is clearly contrary to the terms of Rule 96E. That demand and penalty imposed are therefore clearly illegal and they are required to be set aside. I .....

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