9911796707
TMI Blog2007 (2) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... nd manufacture cabled yarn or twine. This twine is used in the manufacture of nylon fishing net. They have filed declaration from time to time declaring their activity of making nylon fishing net twine which was claimed by them to be classifiable under Chapter Heading 5607.90 and claimed exemption under Notification No. 6/2002 dated 1-3-2002 during the relevant period. This notification exempted all goods falling under Heading 5607 made from yarn, monofilament, strips etc. on which appropriate duty of excise leviable under the first schedule to the Central Excise Tariff Act or as the case may be additional duty leviable under Section 3 of the Central Excise Tariff Act, 1985 has already been paid. The classification of their yarn under Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption in their representation to the CBEC, a copy of which was endorsed to the Commissioner. However since they have taken up the matter with the CBEC, they could not submit the reply to the show cause notice and therefore the matter was adjudicated without taking this plea into consideration. It was however admitted that in their submission later on they have not taken such a plea, but the benefit of Notification 30/2004 cannot be denied to them, even if such plea was not made in their subsequent submissions. 3. As regards the period prior to 9-7-2004 when Notification 30/04 was not in force it was submitted that the demand was time barred as they have filed a relevant declarations from time to time and the Department has not dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t yarn or fibre. However, the exemption was optional and the person willing to pay duty could avail of the duty credit paid on yarn/fibres. Thus the scheme was that no duty was payable on intermediate products. It was also submitted that their classification under Chapter Heading 5607 has all along been accepted and the show cause notice does not seek to deny the benefit prior to September 2002 when also similar condition was there as the understanding was that the appropriate duty paid on base yarn will include nil duty also. Thus no suppression with intent to evade duty can be alleged. 4. We have considered the submissions. We find that prima facie the applicants are entitled to exemption under Notification No. 30/04 w.e.f. 9-7-2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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