TMI Blog2015 (2) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... odified by Rule 173N of the said Rules. In the instant case, the learned Counsel submitted that there is no dispute that the applicant followed the procedure as provided under sub-rule (3) of Rule 96D. On a perusal of the impugned Adjudication order, we find that the Adjudicating authority proceeded on the basis that the fully processed cotton fabrics removed for further processing of LDPE/HDPE coating, it ceases to retain its identity as cotton fabrics and a new distinct commodity emerges of such coating/lamination. Prima facie, we find that there is no change of identity of the processed fabrics at the hand of the processor. In any event, the process of LDPE/HDPE was undertaken at the hands of the principal CVIL. Hence, we find that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities below erroneously proceeded on the basis that the identity of the processed fabrics was changed at their hands. In fact, there was no change of identity of the cotton fabrics and no distinct commodity emerged after the processing of the fabrics at their end. At any event, the process of LDPE/HEPE coating was undertaken at the premises of CVIL. Hence, there is no basis for the demand of duty. He further submits that the Hon ble Madras High Court in this matter held that the show-cause notice is without jurisdiction and the liberty was given to the department to proceed against the petitioner for payment of excise duty as per law. Despite the order of the Hon ble High court, the impugned order was passed on the basis of the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity proceeded on the basis that the fully processed cotton fabrics removed for further processing of LDPE/HDPE coating, it ceases to retain its identity as cotton fabrics and a new distinct commodity emerges of such coating/lamination. Prima facie, we find that there is no change of identity of the processed fabrics at the hand of the processor. In any event, the process of LDPE/HDPE was undertaken at the hands of the principal CVIL. Hence, we find that the applicant made out a strong prima facie case for waiver of pre-deposit of the entire amount of duty along with interest and penalty. Accordingly, pre-deposit of duty along with interest and penalty is waived till disposal of the appeal and recovery stayed thereof. Stay application is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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