TMI Blog2003 (2) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... tice K.K. Usha, President]. This is an appeal at instance of the assessee challenging the order passed by the Commissioner of Central Excise, Chandigarh dated 28-3-2002. Under the above order the Commissioner had confirmed the duty demand of Rs. 27,3,952 under Rule 9(2) of the Central Excise Rules read with Section 11A of the Act. He also imposed a penalty of an equal amount and directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice was 1-4-94 to 31-10-95. It was alleged that during the relevant period the assessee had used synthetic waste after carding etc. Sample of the yarn drawn from a lot of 57.00 Kg. On 27-3-96 confirmed pre-dominance of synthetic material in it. 3. It was contended before the commissioner that duty demand for the period prior to 26-5-95 cannot be sustained as during that period Heading 55.09 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of demand was from 1-4-94 to 31-10-95. 4. The Commissioner rejected all the contentions raised by the assessee. 5. We heard ld. Counsel for the appellant as well as ld. Departmental Representative. The appellant contended that the entire demand is unsustainable on the ground of limitation for the two reasons, namely, (i) the Departmental officers were aware of the manufacturing activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar manufacture that the product is not liable to excise duty. On the other hand, reference to the communication between the Association and the Department would clearly show that the industry was very well aware of the durability of the product. We therefore find that the Commissioner is justified in coming to the conclusion put forward on behalf of the appellant regarding limitation. 6. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. Appellant is justified in its submission that the provisions of sections 11AB and 11AC would not be applicable in the present case as those provisions were brought into statute much after the period of demand under show cause notice dated 16-3-99. We, therefore, reduce the quantum of duty demand to Rs. 7,28,540 and set aside the direction to pay interest under Section 11AB. Penalty is impose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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