9911796707
TMI Blog2017 (10) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... ock finished goods in their RG-1 and also shown of 571556.75 long meter as a loose stock in column of Finishing Room in the RG-1 register. The Respondent Claimed that since the stock reflected in finishing room is not a finished stock, therefore the clearance of said would attract Excise Duty under Section 3A effective from 16.12.98. The case of the department is that merely because the stock shown in Finishing Room it does not mean it is not a finished stock accordingly it will attract excise duty at the rate of 12%BED and 8% AED. The Adjudicating Authority confirmed the demand. Being aggrieved by the Order-in-Original Respondent filed appeal before the Commissioner (Appeals) who set aside the Order-in-Original No. 25/2000 dt. 25.02.2000 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Ld. A.R. and perused the records. The short issue to be decided is that whether the loose stock shown in column (in Finishing room) is a finished stock or otherwise in order to levy duty as per rate prevailing prior to 15.12.98 or in term of section 3A after 15.12.98 or otherwise. From the fact of the case, it is found that though the goods were shown in loose form in the column finishing room but it was only awaiting the process of folding and packing. In such situation the goods shown in finishing room is clearly an excisable goods. Once the goods become excisable goods, it is indeed a finished goods for the purpose of levy of Central Excise Duty. If it is accepted that the goods lying in loose form is not a finished goods, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discharge duty liability at the rate prevalent prior to the introduction of the compounded levy scheme, while the respondents case is that the goods are not finished goods and that the goods are under process and therefore, after being fully manufactured were cleared on payment of duty under the compounded levy scheme. 2. We have heard both sides. We find that the finished nature of loose stock shown in the RG-1 register on the midnight of 15-12-98 was not disputed by the processors until the issue of show cause notice on 16-4-99. Further from a perusal of the entries in the RG-1 register, it is clear that it is only the manufactured goods that are required to be entered therein. The loose stock only refers to stock of finished goods whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notes and therefore, no fabric can be considered as a semi-finished fabric. It is not the respondent's case that the entire quantity shown as loose was all grey fabric only. Once the grey fabric has undergone some processing which amounts to manufacture as per the chapter note, the same is to be considered as manufacture and duty leviable up to that stage of fabrics as to be discharged at the rate prevalent on 15-12-98. The loose fabrics has to be considered as fully finished fabric as has also been held by the Tribunal in the case of Vishnu Dyeing and Printing Works (supra). The other decision of Shree Ram Textiles and Processing Mills (supra) referred to by the respondents does not deal with the aspect that every individual process am ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
