9911796707
TMI Blog2007 (10) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... a, Member (T) Shri Prakash Shah, Advocate, for the Appellant. Shri N.A. Sayed, JDR, for the Respondent. ORDER [Order per : A.K. Srivastava, Member (T)]. - The appeal filed by the appellants was dismissed earlier on the ground that the appeal, as required under the amended Section 35B of the Central Excise Act, 1944 was not submitted. The appellants have, however, since then paid the required f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared without payment of Central Excise duty by availing the benefit of Notification 22/96, dated 23-7-1996 and the said yarn is consumed captively in the manufacture of fabrics, both grey as well as processed fabrics, falling under different Chapter sub-heading viz. 5207 and 5208 of the Central Excise Tariff Act, 1985. 5. The issue involved in the instant appeal is whether the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the necessary adjudication proceedings, the Commissioner ordered the appellants to pay the differential duty of ₹ 36,31,458/- and also interest on the abovesaid amount in terms of Section 11AB of the Central Excise Act, 1944. She also imposed penalty of ₹ 2,00,000/- under Rule 25 of the Central Excise Rules, 2002. 7. We have examined the position and we find that the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 4/2002-C.E. is applicable to the composite Textile Mills even though they were exempted from payment of duty under Notification No. 22/96-C.E. in respect of captively consumed yarn and base fabric. The circular clarifies that textile fibres, raw material for composite mills, are brought from the market and hence have to be deemed to be duty paid in view of the Explanations to the said Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted herself to apply the higher rate of duty in the case of the appellants, whereas the concessional rate under Notification No. 14/2002-C.E. has been allowed in respect of other units similarly situated. We, therefore, set aside the impugned order with consequential relief to the appellants...." 8. Respectfully following the ratio of the aforesaid judgment of the Tribunal, we hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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