9911796707
TMI Blog2008 (1) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... the period December, 1994 to July, 1995. They issued a show-cause notice dated 2-3-99 demanding duty of over Rs. 9.9 lakhs from the assessee and proposing penalties under various provisions of Central Excise Rules, 1944. Interest on duty was also demanded under Section 11AB and penalty was also proposed under Section 11AC of the Central Excise Act. The demands and proposals were contested. In adjudication, the original authority confirmed the above demand of duty against the assessee by invoking the extended period of limitation and imposed on them a penalty of Rs. 1 lakh. In the assessee s appeal against the decision of the original authority, ld. Commissioner (Appeals) set aside the demand of duty for the period prior to 16-3-95 on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntification of Central Excise duty, duty of excise was leviable on the commodity. 3. Ld. Counsel for the assessee submits that, in the case of C.T. Cotton Yarn Ltd. v. CCE Indore, 2006 (202) E.L.T. 385 (S.C.), the Hon ble Supreme Court remanded the question of excisability of cotton waste to this Tribunal and that, in the remanded proceedings, the Tribunal has held that cotton waste cannot be treated as a manufactured product vide Final Order Nos. 384-385/07, dated 27-6-07 in Excise Appeal Nos. 1715 1716/97, of the Principal Bench, New Delhi [2007 (218) E.L.T. 233 (T)]. 4. Ld. SDR has reiterated the grounds of the Revenue s appeal and also has opposed the assessee s appeal. 5. In the case of C.T. Cotton Yarn (supra), the Hon ble S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the addition of preservatives and other materials, does not amount to manufacture of new products. The factual situation in the case of the instant cotton waste is even worse. It is not even the result of making natural materials fit for use. That is the case in Arihant Cotsyan since the cotton in question was used for spinning into yarn. In regard to soft waste, the processes are of elimination and separation of unusable material, the resulting residue is not a manufactured item. The appellant s case is also supported by the ruling of the Hon ble High Court of Delhi that waste material is not a new item having a distinct name, character or use so as to be treated as a manufactured product. 6. We are in agreement with the above vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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