9911796707
TMI Blog2001 (4) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... e of cotton yarn. During the course of scrutiny of the records for the period 1994-95 when the rates of duty were changed from the specific to ad valorem w.e.f. 1-3-1994 on cotton it was found that the appellants had not paid central excise duty for the period 20-5-1994 to 11-8-1994 on single yarn consumed captively for the manufacture of doubled/multi-folded yarn. It was alleged that the duty was required to be paid on single yarn and, therefore the appellants who were paying duty on doubled/multi-folded yarn had not correctly paid duty. A SCN was issued to the appellants asking them to explain as to why the duty should not be demanded and why penalty should not be imposed on them. The appellants submitted that they were not liable to duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period in their case is prior to this amendment. therefore the appellants were not required to pay further duty. He supported his contention that the demand of duty on single yarn stage is deductible when the duty has been paid on doubled/multi-folded yarn at the time of clearance from the factory by citing and relying on the decision of this Tribunal in the case of Bhilwara Spinners Limited, 1999 (105) E.L.T. 136. He further cites the decision of this Tribunal in the case of Modern Threads (I) Limited contained in the Tribunal's Final Order Nos. 573-74/99-D dated 16-6-1999 and by relying on the decision of this Tribunal in the case of M/s. Gokak Vadodara Spinning Mills v. CCE, 1999 (32) RLT 358. 4. Ld.Counsel also submits that the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question of limitation, ld. DR submits that there was no declaration in the classification list to indicate that the appellants were clearing only doubled or muiti-folded yarn and thus there was mis-statement. Ld. DR, therefore submits that there is no case made out by the appellants. 7. We have heard the rival submissions. We note that the issue of payment of duty on single yarn at spindle stage has finally been decided by the Apex Court in the case of CCE v. Banswara Syntex Limited cited above. Thus, duty was required to be paid on single yarn at the spindle stage. We note that the appellants were paying duty on doubled/multi-folded yarn. Since the single yarn and doubled/multi-folded yarn fall under the same tariff heading, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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