2001 (7) TMI 1324

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..... ged in the dyeing of fabrics falling under Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985. They were receiving polyester staple fibre for processing (dyeing) on job work basis from M/s Kamadgiri Synthetics Ltd., Gijarat under Rule 57F(4) challans since July, 1999. They utilised certain own modvatable inputs such as dyes and chemicals for processing of the goods, on which the ass .....

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..... AED at the time of clearance of fabrics after job work. The assessee thereby appeared to short paid duty and appeared to be liable to penalty. Thus a show-cause notice dated 04.02.2000 was issued proposing recovery of duty of ₹ 8,06,862.00 against the assessee and proposing imposition of penalty. The demand was confirmed by the Deputy Commissioner who also imposed a penalty of ₹ 1 lak .....

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..... twice on the same goods once from the job worker and again from the modvat assessee (Principal Manufacturer). The Revenue has filed an appeal in the Supreme Court against the Larger Bench decision. However, filing of an appeal is not sufficient ground to urge that a Larger Bench decision should not be followed. Hence applying the ratio of the Larger Bench decision cited supra, we hold that the im .....

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