2009 (4) TMI 173

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..... from the whole of additional duty of excise leviable thereon – Hence exemption under Notification No. 67/95 is available - E/117/2006 and E/82/2007 - 491-492/2009 - Dated:- 22-4-2009 - Ms. Jyoti Balasundaram, Vice-President and Shri P. Karthikeyan, Member (T) REPRESENTED BY : Shri K.S. Venkatagiri, Advocate, for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - M/s. SRF Ltd. are manufacturers, inter alia, of rubberized textile fabric, dipped tyre cord fabrics and tarpaulins out of unprocessed fabrics of man-made fabric yarn (classified by them under CETSH 5911.90), an intermediate product captively consumed. They purchase/import nylon/polyester filament yarn .....

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..... he Commissioner who held as under :- (1) Fabrics of Synthetic Filament yarn captively consumed by SRF in the manufacture of industrial fabrics may continue to be classified under sub-heading 5911.90. (2) The above classification will be subject to the outcome of the appeal pending before Supreme Court in the case of Jyoti Overseas Ltd. [2002 (142) E.L.T. A 170 (S.C.). (3) I hold that SRF is entitled to claim the benefit of Notification 67/95-CE irrespective of classification under 54.06 or 59.11. (4) I drop the demand for duty, interest and proposal for imposing penalty as given in the Show Cause Notice. 2. The Revenue is in appeal against the classification of the goods and the extension of the benefit of the captive consumption .....

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..... ot cut to size or processed, and hence were non-made ups, they fell for classification either under Chapter 52 or 54 and not under Chapter 59 which covered only made-ups (in other words, the apex court held that only made-ups fell for classification under Chapter 59). We, therefore, accept the stand of the Revenue on classification. However, the benefit of the captive consumption notification cannot be denied to the goods for the reason that the benefit is available unless the final products manufactured out of such inputs are exempt from the whole of the duty of excise or additional duty of excise leviable thereon or are chargeable to nil rate of duty…. In the present case, the inputs were leviable to basic duty and no additional duty of .....

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