TMI Blog2002 (2) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ut payment of duty or observing any procedures for clearing their excisable goods; resulting in non-levy of Central Excise Duty amounting to Rs. 1,01,26,690/- during the years 1993-94, 1994-95 and 1995-96. Since they had manufactured and cleared the Sewing Thread under the Brand names of one M/s. K.C. Pappan Sons, they were considered to be not eligible for benefit of Notification No. 1/93 with intent to evade duty extended time limit for recovery of duty under proviso to Section 11A(1) were invoked. The notice also proposed imposition of penalty on the firm and other notices under Rule 209A and confiscation of the seized goods, pants and machinery. 2. The Commissioner after hearing passed the impugned order by concluding - (i) M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Thread manufactured at these units were transferred under stock transfer documents to their office from sales were effected through dealers in the brand names of Kayez Anna which is not registered. Before 1989 they were received processed yarn from various suppliers i.e. before the Dyeing unit was established. That Raw Materials required on (1) Polyester yarn (2) Dyes (3) Chemicals like Caustic Soda, Hydro Sulphate, Sodium Sulphate (4) Soap (5) Silicone Oil, Silicon emulsion (6) Match Wax, etc.; where wax and soap are used in the rewinding units and other items in the Dyeing. That since 1995 they were manufacturing Sewing Thread using cotton as raw material while presently they were not making cotton Sewing Threads. Polyester yarn is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tubes after passing it through Match Wax Bath to give a wax coating. Thereafter packing in lengths of 130 mtrs, 150 mtrs, 300 mtrs and at time 1000 mtrs, 2000 mtrs, 5000 mtrs, of each tube, is labelled and placed in cartons and dispatched and sold as Sewing Threads. (c) From the above admitted positions as found, we have no hesitation to conclude that what is emerging after the operations are conducted in the appellant s premises on the material received , is resulting in and emergence of a different commercial commodity coming in existence. This is known to be different from the raw material, by the people who deal in such goods. They satisfy the test of Sewing Thread definition in the Tariff when they are cleared from the premise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein - ....5. Counsel for the appellant sought to contend that the kraft paper was duty paid goods and there was no change in the essential characteristic or the user of the paper after lamination. The fact that the duty has been paid on the kraft paper is irrelevant for consideration of the issue before us. If duty has been paid, then benefit or credit for the duty paid would be available to the appellant under Rule 56A of the Central Excise Rules, 1944. 6. The further contention urged on behalf of the appellant that the goods belong to the same entry is also not relevant because even if the goods belong to the same entry, the goods are different identifiable goods, known as such in the market. If that is so, the manufacture occurs an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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