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TMI Blog1983 (7) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... of mixed yarn containing more than 40% by weight of cotton which they were manufacturing and using captively for making fabrics. Such yarn was classifiable under Item 18E of the Central Excise Tariff. Though the normal rate of duty for such yarn was in terms of so many rupees per kilogram, the compounded levy scheme fixed a sum in terms of so may paise per square metre of the fabric made from such yarn. Such sum was in lieu of the normal duty liability on yarn and was payable at the time of clearance of the fabrics. For the aforesaid type of yarn, this compounded levy scheme stood withdrawn on 24-7-1972 and the normal duty at the rates specified in Notification No. 168/72-C.E., dated 24-7-1972 became payable. On the midnight of 23/24-7-1972 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bom.) (Shriam Mills Ltd. and another v. U.O.I. and others) (5) Bombay High Court judgment dated 4-10-1979 in Misc. Petition No. 728 of 1975 (The Shreenivas Cotton Mills Ltd. v. C.L. Nangia, Appellate Collector and others). (6) Bombay High Court judgment dated 4-10-1979 in Misc. Petition No. 773 of 1975 (Rajesh Textile Mills Ltd. v. M.L. Badhwar and others). The Department s representative stated that in a similar case of M/s. Raipur Mfg. Co. Ltd. (Appeal No. 61/76-D), this Tribunal had already passed the order No. D-170/83, dated 2-4-1983 which was favourable to the appellants and that in view thereof he had nothing further to say. 4. We have carefully considered the matter. The two judgments of M.P. High Court cited at (1) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined with reference to the rules prevailing on the date of actual manufacture. The Tribunal in its aforesaid order held that the compounded levy scheme contained in Section E-VI of the Central Excise Rules was more or less a self-contained code, that the provisions of other normal rules like Rules 9 and 9A were not applicable to it, that in respect of the yarn manufactured and permitted to be removed for captive consumption under the compounded levy scheme, the duty liability had to be determined at compounded rates in terms of Notification No. 62/72-C.E. which liability had to be discharged only at the time of clearance of the fabrics and that denying such benefit would be doing violence to the whole scheme of the compounded levy proced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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