COMMISSIONER OF CENTRAL EXCISE Vs. DUNLOP INDIA LTD.

JUDGEMENT

(1.) The Revenue by this appeal challenges the Order -in -Appeal No. 137/98 (M -II), dated 3 -4 -98 passed by the Commissioner (Appeals), by which the Commissioner (Appeals) has set aside the order of the original authority and directed him to settle the 57E certificate.

(2.) Brief facts of the case are that M/s. Dunlop India Ltd., the assessees -respondents herein are manufacturers of Tyres, Tubes and flaps falling under Chapter 40 of the CETA. They also manufacture dipped Nylon Tyre Cord warp sheets falling under 5902 of the CETA. This is an intermediate product for the manufacture of tyres.

(3.) The intermediate product is exempt from payment of duty in terms of Notification No. 67/95 if used within the factory of production, for the manufacture of dutiable tyres. In respect of certain quantities of removals to the Sahaganj factory, a sister concern of the assessees -respondents, which are related mostly DEEC materials, no duty was paid by the respondents as they were under the impression that no duty was payable when such DEEC materials were used and intermediate products were manufactured and sent to their own sister factory.