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TMI Blog1990 (8) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... filing price lists/contracts in accordance with the provisions of Rule 173C of the Central Excise Rules. After the price lists were approved by the Department, the duty was being paid in accordance with the approved price lists. While so on 23-3-1977, 29-3-1977 and 14-10-1977, the respondents issued show cause notices under Rule 10 of the Central Excise Rules proposing to recover an amount of Rs. 1,08,030.50, Rs. 53,809.15 and Rs. 42,853.55 respectively for the period commencing from 16-3-1976 to 2-5-1977, alleging short levy of duty on the ground that the yarn duty element has not been included in the assessable value of the respective fabrics. On receipt of the reply, the Assistant Collector confirmed the demand. The appeal to the Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with the procedure established by law. In reply to the second contention, he submitted that once proceedings are initiated during the period when the Rule was in force subsequent deletion of the Rule does not affect the continuation of the proceedings. In support of his contention, he relied on Atma Steels Pvt. Ltd. and Others v. Collector of Central Excise, Chandigarh & Others - 1984 (17) E.L.T. 331 (Tribunal) and Bhor Industries Ltd., Bombay v. Collector of Central Excise, Bombay - 1984 (17) E.L.T. 559 (Tribunal). As regards the third contention, he replied that excise duty paid on the yarn under Compounded Levy Scheme has necessarily to be included in the assessable value of the fabric manufactured out of yarn, even if the duty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in blend of viscos fibres (non-cellulosic origin) and hence the said goods are liable to be classified under T.I. 18(iii)(ii). The Supreme Court, while setting aside the demand show cause notice, observed as follows: "That the notice set out as an established fact that the classification lists submitted by the petitioners had been modified by the Assistant Collector, Central Excise, Ujjain and the only matter with respect to which the petitioners were asked to show cause was with regard to the quantification of the amount of the short-levy and consequently, the amount which was liable to be recovered from the petitioner No. 1. This notice, therefore, cannot be regarded as a show cause notice against the modification of the classification l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Collector of Central Excise, Ahmedabad Division-11 Jivabhai Mension, Ashram Road, Navrangpura, Ahmedabad-380009, why you should not be required to pay the said amount of Rs. 1,08,030.50 P (Rupees one lakh eight hundred thirty and paise fifty only). The particulars of the goods to which the short-levy realised on the cotton fabrics cleared from 16-3-1976 to 30-9-1976 in which the value amounting to Rs. 12,46,095.13P being the cotton yarn duty paid in the manufacture of the fabrics so cleared has not been added to the cost of the said fabrics and thereby the assessable value has been under-declared to the extent of Rs. 12,46,095.13P. The grounds on which aforesaid amount proposed to be recovered is mentioned in the appended sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow cause notices were issued before the Rule was repealed. Therefore, the proceedings initiated in pursuance of these show cause notices continued. Whereas the third show cause notice was issued after the repeal of the Rule on 6-8-1977. Therefore, this show cause notice is not valid as the Rule 10 was repealed by that time. As regards the third contention, admittedly, the appellants during the relevant period, were discharging the duty liability on yarn consumed in the mills for weaving of fabric at the fabric state as provided under Rule 96B/96W of the Central Excise Rules, 1944. In other words, the duty payable on yarn is collected at the fabric stage. However, that does not mean that the duty payable on yarn cannot be added in the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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