2008 (12) TMI 517

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... dent. [Order per : Jyoti Balasundaram, Vice-President]. Vide impugned order, the Commissioner of Central Excise (Appeals) has upheld the confirmation of payment of Rs. 19,86.471/- together with interest on Nylon Chips emerging in the course of manufacture of 210 Denier variety of Nylon Yarn Filament out of caprolactum and upheld penalty of Rs. 40,000/- as imposed by the adjudicating auth .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tively consumed. The assessee submits that in the case of Nylon Chips which are cleared from factory, the chips are subjected to spraying with nitrogen and then packed, while in the case of chips captively consumed, for the further manufacture of Nylon Filament Yarn, obviously no packing takes place as the Nylon Chips are captively consumed and, therefore, the costing of the product has to be take .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he purpose of re-determining the value of the Nylon Chips captively consumed to the adjudicating authority. 3. In the result, we hold that : (a) Nylon Chips are dutiable; (b) Duty liability is to be re-determined after arriving at the value of the Nylon Chips on the basis of costing method; and (c) While demanding duty adjustment is to be given of the credit already reversed by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X