9911796707
TMI Blog2000 (7) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... t has also been held that thereafter for the subsequent period such duty not being leviable is not demandable. The second issue decided is concerning the terry towels manufactured out of Weft Pile Knitting machine and it is held that the same is exempt under Notification Nos. 109/86 and 65/87 of Central Excise. A penalty of Rs. 5000/- has been imposed in view of duty liability on cotton yarn mentioned above. 2.The assessee has filed a cross appeal mentioned above against the order impugned noted above with respect to the duty liability confirmed on cotton yarn. 3.In the other appeal noted above filed by the assessee, the issue is the same as their claim for exemption of terry towels has been denied by the Collector (Appeals) vide Order- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l filed by the department after considering the import of Note 5 to Section XI and allowed benefit of the exemptions to the assessee in respect of terry towelling fabrics. He therefore submits that the ratio thereof would be clearly applicable to the facts of this case and the Revenue appeal is required to be rejected while their appeal is required to be allowed accordingly. With regard to their cross appeal on cotton yarn noted above, ld. Advocate does not wish to now press the same. 7.On careful consideration of these submissions and records of the case, we find that the Tribunal had considered the classification of terry towelling fabrics under Heading 58.02 or only terry towels under Heading 63.01 of the Tariff Act. In this connection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut such sewing of the hems. Hence the product was held to be classifiable under Chapter 63 of the tariff. If the ratio of the said decision is applied to the facts of this case, then we do not find any infirmity in the order-in-original impugned by Revenue which has also given to a similar conclusion. Therefore, we are of the considered view that there is no merit in the Revenue appeal and the same needs to be rejected. Since the ld. Advocate is not pressing their cross appeal with respect to the confirmation of the demand on cotton yarn on cone the impugned order with respect to this demand of duty as noted above, is not interfered with. 9.The appeal of the assessee bearing No. E/5756/92 is also on exactly the same subject and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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