TMI Blog2002 (11) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... of elastic tapes, etc., was sold to such manufacturers without physical delivery of the goods. The invoices under which this yarn was cleared by the appellants, were, however, sent to the said manufacturers of final products, who would, in turn, issue and dispatch delivery challans to the appellants for purposes of Rule 57J/57AC. While so, the grey textured yarn covered by such invoices and delivery challans were retained by the appellants for captive use in the manufacture of dyed yarns. The dyed yarns so manufactured by the appellants were then cleared to the aforesaid manufacturers of final products under cover of the same challans. The dyed yarn was then used by the said manufacturers (appellants customers). The customers had undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal s Larger Bench in the case of Maruti Udyog Ltd. v. CCE, New Delhi [2000 (118) E.L.T. 43 (Tribunal- Larger Bench)] before the ld. Commissioner (Appeals). The Commissioner (Appeals) in his own way distinguished the cited decision from the instant case and held it to be inapplicable. He upheld the decision of the lower authority. Hence the present appeal. 2. Heard both sides. 3. Ld. Counsel for the appellants submits that the issue in this case is covered by the decision of Larger Bench Maruti Udyog (supra). 4. Ld. JDR, on the other hand, seeks to justify the impugned orders on the strength of the findings contained therein. Both sides have extensively referred to the provisions of Notification No. 214/86-C.E. and Rules 57J and 57A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dencing payment of duty on the goods. The principal manufacturer, upon receipt of the invoices, in turn, issued delivery challans back to the appellants, purporting to act under Rule 57J/57AC and the appellants, on their part, used grey textured yarn (input for the principal manufacturer) for the manufacture of dyed yarn (intermediate product for the principal manufacturer) in their factory. The appellants then cleared the dyed yarn without payment of duty, under the same delivery challans, to the principal manufacturer (customer). In doing so, they claimed the benefit of Notification No. 214/86-C.E. 6. I have examined the provisions of the Notification. I find that this Notification visualizes a situation in which a principal manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncipal manufacturer, nor is there anything in this Notification prohibiting the appellants working as a job worker for the principal manufacturer after having acted as an input-supplier. The substantive requirements of the Notification were apparently fulfilled by the appellants. Nothing contained in Rule 57J/57AC, as the Rules stood as at the material time, seems to be inconsistent with this purport of the Notification. That being the position, the appellants could legitimately clear the dyed yarn without payment of duty to their customers, availing the benefit of exemption under Notification No. 214/86-C.E. as amended. The decision of the Larger Bench in Maruti Udyog (supra) seems to be well in support of what was done by the appellants d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
