2005 (8) TMI 551

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..... espondent. [Order per : Archana Wadhwa, Member (J)]. - As per the facts on record, the appellants are engaged in the manufacture of metallic yarn, commonly known as "Zari" falling under Chapter Heading 5605.00 of Central Excise Act, 1985. During the period relevant for the purposes of present appeal i.e. 1-4-95 to 31-5-98, the appellant was clearing the said product at nil rate of duty in terms .....

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..... made out of duty paid polyester film has to be treated as handicrafts, thus eligible to the notification benefit. 2. Subsequently, the Hon'ble Supreme Court in the case of Collector of Central Excise, New Delhi v. Louis Shoppe reported in 1996 (83) E.L.T. 13 (S.C.) examined the expression handicrafts as appealing in the said Notification in the context of wooden furniture and laid down two t .....

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..... lant was issued a show cause notice dated 19-6-98 raising demand of duty of Rs. 68,93,024/- as Basic Central Excise duty and Rs. 10,33,954/- as additional duty of excise in respect of metallic yarn (Zari) cleared by the appellant during the period 1-4-95 to 31-5-98 on the ground that the exemption was not available. Notice also proposed imposition of penalty and confirmation of interest against th .....

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..... Circular. In these circumstances, there was no justification for invocation of longer period of limitation. 5. After hearing the ld. DR, we find force in the submissions of the ld. Advocate. The benefit of exemption was being extended by the revenue itself to the appellants in the light of the view expressed by the Board in the various circulars. The subsequent circular issued on 19-12-96 re .....

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..... judicating authority is required to confirm the demand only for a period of six months from the date of issuance of the show cause notice and re-quantify the same. At this stage ld. Advocate submits that he would also be entitled to the benefit of Modvat credit of duty paid on the inputs, subject to availability of documentary evidence. 7. We direct the Commissioner to re-quantify the duty f .....

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