1998 (5) TMI 67

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..... penalty of Rs. 10,000/- has also been imposed for contravention of the central excise duty. The item manufactured by the appellants, namely, HDPE Woven Sacks undisputedly fall for classification under CET sub-heading 6301.00. They are made out of non-duty paid HDPE laminated fabrics produced on circular looms by the fabrics manufacturer. The appellants have availed of the benefit of Notification No. 175/86, dated 1-3-1986, as amended, up to the clearance value of Rs. 15 lakh and thereafter paid duty @ 5% adv. Vide letter dated 29-8-1987, they informed the jurisdictional Range Superintendent that they would be manufacturing HDPE Woven Sacks without the aid of power w.e.f. 1-9-1987 and stopped payment of central excise duty thereafter. A not .....

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..... e denial of the exemption under Notification No. 65/87 in the undisputed position of non use of power by the appellants who are claiming the benefit of the notification; and 3. the demand is barred by limitation. The appellants had informed the Department on 29-2-1987 that they would be starting the production of HDPE woven sacks from 29-8-1987 and that they would be starting production of HDPE Woven Sacks without the aid of power from 1-9-1987 and the goods so produced would be cleared at nil rate of duty under Notification No. 65/87. The learned Counsel submits that since the appellants disclosed this fact to the Department that they would be clearing the HDPE Woven Sacks manufactured by them without the aid of power at nil rate of .....

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..... lumn No. 4 of the table subject to the conditions, if any, laid down in the corresponding entry in Column No. 5 thereof. The appellants had claimed the benefit of Serial No. 4 of the table annexed to the notification. This entry describes the goods as "made up textile articles including blankets .......falling under sub-heading 6301.00". The rate prescribed in Column No. 4 is nil and the condition described in Column No. 5 is "if made without the aid of power". The condition set out against Serial No.  4 has not been contravened by the appellants. In other words, there is no dispute that the appellants did not use power in their factory. There is no condition in the notification that the benefit will not be available if the starting ma .....

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