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TMI Blog2010 (9) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Appeal No. 5/472/2008 is arising out of the order in appeal No. 19-(RKS)ST/JPR-I/2008-dated 24-1-2008 relating to the upholding of demand of duty and imposition of penalty by the original authority for the period April 1997 to June 1998. 1.2 Appeal No. E/1430/2010 is against the order of the Commissioner (Appeals) No. 123 (DK)CE/JPR-I/2010, dated 26-2-2010 upholding the demand of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the permission granted by the Government, wastage permitted was 10.80% for sheared crammed fancy border terry towel and 5.66% for sheared terry towel without border. These norms were fixed vide letter dated 16th July, 1998 revising upwards the earlier norms prescribed. Show cause notices were issued alleging that the appellants have generated wastage in excess and in some cases, 4% more tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire raw materials procured by the appellants duty free stand properly accounted. They have also used the entire raw materials for manufacturing unsheared terry towels. Merely because, the wastage of yarn during shearing was slightly higher than what was prescribed by the Department of Industrial Development, no presumption can be made that proportionate quantity of yarn contained in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... norms fixed would imply that the conditions under which the inputs have been procured duty free have been violated and therefore, the demands under Rule 196 of Central Excise Rules, 1944 have been validly made. 7. I have carefully considered the submissions from both sides and perused the records. Waste norms prescribed are generally on the basis of average industry norms and it does not mean t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustification for upholding the demand of duty under Rule 196 of the Central Excise Rules, 1944. 8. Since no demand is being sustained, the question of imposition of penalty does not arise. At any rate, merely because a manufacturer generated a higher percentage of wastage than the industrial norms, no penalty can be imposed. As already noted, it is not the case that duty free input was diverte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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