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TMI Blog2005 (1) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods are Twine. In view of this, it is very difficult to sustain the charge of suppression of facts. In the light of the above observations, invocation of longer period under proviso to Section HA(1) is not correct. Further it is seen that for the period from March 1995 to February 1997, the department initiated proceedings by issue of 4 Show Cause Notices wherein the Department did not question the classification of the product. Even if the goods are classified as Multiple (folded) Yarn , as contended by the party, they would be exempted under Notification 8/96 and 5/98. Hence, the OIO deserves to be set aside. We allow the appeals with consequential relief. X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notice proposed to classify the goods as 'Multiple (folded) Yarn' under CH 54.02 as against Twine' falling under Chapter Sub heading 5607.50 as claimed by the appellants. But the Commissioner, in the impugned order, has classified the goods as 'Sewing Thread' falling under CH 54.01. The Department cannot set up a new case by going beyond the Show Cause Notice. b. The adjudicating authority, in her order, appears to have relied on the Chief Chemist's Report dated 11th December, 1998. The Show Cause Notice was issued on 22nd July, 1999. When the Show Cause Notice was issued, the Department was in possession of the Chief Chemist's Report. However, the same was not taken into account by the Revenue. Only during d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court in 1997 (92) ELT A 231 (SC). e. In any case, the goods in question are exempted under Notification 8/96-CE dated 23.07.1996 as amended. f. Assuming without admitting that the goods are to be considered as multiple (folded) cabled yarn, the product is exempt from duty vide Notification 5/98-CE dated 02.06.1998. g. In the present case, there is absolutely no justification for invoking the longer period as the appellants have not suppressed any material and all the facts were before the Department. h. In view of the above submissions, penalty and interest are not imposable. 4. The learned SDR reiterated the points in the adjudication order. 5. We have gone through the rival submissions. It is a fact that the Show Cause No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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