9911796707
TMI Blog2000 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... this case was issued in the facts of the case which briefly are :- M/s. J.K. Synthetics Ltd., Kota (here-in-after referred to as the "assessee" also) at the material time were engaged in the manufacture of Polyester filament Yarn, Nylon Filament Yarn and polymide chips falling under Chapter 54 39 respectively of the Schedule to the Central Excise Tariff Act, 1985. The assessee manufactured polaymide chips and used them captively in the manufacture of po]yamide nylon filament yarn of 210 deniers without payment of Central Excise duty leviable thereon. Since the final product was exempt from payment of duty, the intermediate product viz. Polyamide Chips were chargeable to duty w.e.f. 1-3-94 as Notification No. 84/91-CE dated 30-8-91 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumption on comparison price of 25 Kg. rate to 715 Padampat Institute etc. is not called for and valuation this case is were done as per rule 6b(i) and the invoice for sale to Jhalwar Unit not accepted as it is for sub-standard goods and to a related party and since the party had pleaded in the CEGAT who vide order 4-6-99 remanded the case, the price of comparable goods to be @ Rs. 78/- per Kg. he acceepted the same as fair, to work out the demand and worked out the duty accordingly. (c) Since duty on intermediate product was not paid he held them liable for penalty under Rule 173Q read with rule 9(2) . 5. We have heard both the sides and considered the material on record and find :- (a) Caprolactum results in polyamide chips which we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction are not available, the Commissioner having correctly rejected the invoices produced by the appellants and the proposals in the SCN. The matter is therefore, required to be remanded back for re-determination of value of polyamide chips, for which necessary data should be presented by the appellants, the duty to be reworked out after granting the benefit of Dai Ichi Karkaria decision of the Supreme Court 1999 (112) E.L.T. 353 when the costing is being worked out. (c) Penalty of Rs. 4 lakhs imposed under rule 173Q is required to be set aside and redetermined, based on the fact of what the demand by reworking the value would emerge and also consider the quantum of Modvat credit is availed to be Re-Credited. This observation does not in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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