9911796707
TMI Blog2018 (7) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... erted into Polyester Grey fabrics to their job workers as per the notification No. 1/95-CE, dated 04.01.1995. The goods manufactured by the assessee would have been liable to duty if they were cleared into the domestic area but for this exemption notification. The exemption notification exempts the goods manufactured by 100% EOU and cleared for job work subject to some conditions including the condition that the user industry executes a bond with the Asst. Collector of Central Excise in the prescribed form for proper accountal of the receipt, storage and utilization of the goods. Para 2 of the notification also authorizes the Asstt. Collector to impose conditions and limitations subject to provisons of EXIM policy, while permitting the clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t norms as per the declarations filed by the appellants, who have submitted the data on the basis of industrial norms. The appellants have also furnished a Bond wherein they have undertaken to comply with the conditions stipulated in the Notification/EXIM policy. I find that the Deputy Commissioner has not fixed any lesser ceiling for shrinkages/wastages, but prescribed these norms as per the declarations filed by the appellants and as per the industry standards. When the declaration with regard to input-output ratio filed by the appellants was accepted, it is the responsibility of the appellants to strictly adhere to the limits prescribed therein and to account for shrinkages/wastages properly. Moreover, the appellants have not furnished a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thetics Pvt. Ltd. [2013(292)E.L.T 99 (Tri.-Del.)] and (3) Bindal Textile Mills Limited vs. CCE Thane [2007(81) RLT 628 (Cestat-Mum.)] Tribunal had held in favour of the assessee, finding that shrinkage of grey fabrics even if it is in excess of the norms, cannot automatically lead to the allegation of clandestine removal and no duty can be charged or penalty can be imposed under such circumstances. 5. Ld. DR vehemently opposed the appeal and reiterated the arguments made in the Order-in-Original and Order-in-Appeal. It is his submission that exemption notification is an exception to the general rule and must be strictly considered against the appellant. In this notification, one of the conditions is that the assessee executes a bond for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Commissioner of Central Excise (4% or 5% based on the discussions with the assessee) while granting the permission. The department seeks to raise demand on the shrinkage in this case but there is no allegation in the show cause notice that excess loss or shrinkage is actually clandestine removal. It is the case of the department that since the loss is much higher than what has been agreed to in terms of their bond, the assessee is bound to account for or pay duty on the excess loss. I find that in identical cases, the Delhi and Mumbai Benches of CESTAT have already taken a view that excess shrinkage of fabrics when sent out for job work does not automatically lead to the conclusion that there was clandestine removal and no duty is charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
