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2005 (12) TMI 385 - AT - Central Excise
Issues:
Lower authorities demanded differential excise duty on cotton fabrics under a concessional rate notification. The dispute revolves around the applicability of a proviso related to specific processes carried out on the fabrics. Analysis: The judgment by the Appellate Tribunal CESTAT, Chennai, involved a case where lower authorities demanded differential excise duty from the appellants on cotton fabrics, denying the concessional rate of duty under Notification No. 38/03-C.E. The dispute primarily focused on whether the proviso related to specific processes applied to the fabrics in question. The Tribunal noted that woven cotton fabrics were chargeable to duty at a concessional rate under the said Notification during the disputed period. It was established that the fabrics had undergone one or more processes listed in the Notification, but the contention was whether the proviso regarding bleaching, dyeing, or printing applied. The appellants argued that their fabrics were woven from dyed yarn and had not undergone any of the mentioned processes, thus making the proviso inapplicable to their case. Upon examining the submissions from both sides, the Tribunal found that prima facie, the proviso was not applicable to the fabrics in question as none of the specified processes had been carried out on them. Consequently, there was no valid reason to deny the appellants the benefit of the Notification. As a result, the Tribunal allowed the waiver of pre-deposit and stay of recovery concerning the duty and penalty amounts. The decision was made in favor of the appellants based on the interpretation of the proviso and the absence of the mentioned processes on the fabrics. The judgment emphasized the importance of correctly applying statutory provisions and notifications in determining the duty liability on goods, ensuring fairness and adherence to legal requirements in excise matters.
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