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Commissioner of Central Excise, Mumbai-V Versus M/s. Sky Dyeing & Printing Mills

2017 (10) TMI 127 - CESTAT MUMBAI

Loose Stock - duty liability - 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? - Held that: - Once the goods is manufactured in terms of Section 2 (f) which is not in dispute in the present case, the said goods become an excisable goods hence the same is finished goods - Accordingly the loose stock of fabric in the present case is Finis .....

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separate entry for finished goods in the packed condition in the RG-1 register - appeal allowed - decided in favor of Revenue. - E/85/09 - A/89643/17/SMB - Dated:- 21-9-2017 - Shri Ramesh Nair, Member (Judicial) Shri A.B. Kulgod Asstt. Commr. (A.R.) for Appellant None for respondent ORDER The facts of the case is that the Respondent followed the procedure laid down under Notification 41/98-CE (N.T.) dt. 10.12.98 whereby new excise duty structure for textile processor came into force on 16.12.98 .....

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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 and allowed the appeal of Respondent on ground that stock .....

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r semi finished goods in RG-1. He submits that once the goods is manufactured even though in loose condition and yet to be packed also liable to Excise Duty. The term Finished goods is in consonance with the term Excisable goods. Accordingly it is liable for duty as finished goods even if it is in loose form. He submits that the very same issue was considered by the Divisional Bench of this Tribunal in following case (i) Commissioner of Central Excise, Mumbai V/s Vishnu Dying & fitting works .....

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ecided 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 b .....

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d in terms of Section 2 (f) which is not in dispute in the present case, the said goods become an excisable goods hence the same is finished goods. Accordingly the loose stock of fabric in the present case is Finished goods and the stock of such Finished goods lying as on 15.12.1998 will attract excise duty at the rate prevailing during the period prior to 15.12.2008 i.e 12% BED & 8% AED. This issue is no longer res-integra as it has been decided against the assessee by Divisional Bench of t .....

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Textile Processors Annual Capacity Determination Rules, 1998. It is the case of the department which is in appeal before us that the goods in question are finished goods and therefore, required to 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 compo .....

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r finished goods in the packed condition in the RG-1 register. We also find that no reference has been made in the show cause notice or in the adjudication order to any remark "processed" in the RG-1 register which was relied upon by the respondents before the lower Appellate Authority to support their stand that the goods in question still required further processing and therefore, were not finished goods prior to 16-12-98. In these circumstances, we find substance in the appeal of th .....

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e any evidence to show that the loose quantity reflected in the RG-I Register consisted of grey fabrics which was yet to undergo several processes. The various entries in the RG-I Register could not be reconciled even in the statement submitted by the ld. advocate at the time of hearing. Even otherwise, we are in agreement with the plea taken by the Jt. CDR that in case of textiles, every process undertaken amounts to manufacture as per the chapter notes and therefore, no fabric can be considere .....

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