YOUNGMAN WOOLLEN MILLS LTD. Vs. CCE

JUDGEMENT

(1.) This is an appeal of the assessee challenging the order passed by the Commissioner (Appeals) dt. 23.4.03. The issue raised in this appeal is whether Acrylic Knitted Fabrics came into existence during the manufacture of mink blanket from acrylic yarn or not. The Department took the view that the acrylic fabrics came into existence during the manufacture of the mink acrylic blanket which were further captively consumed for the manufacture of mink acrylic blanket on the above basis duty was demanded. The assessee contended that its case is covered by the decision of this Tribunal in the case of Shital Fibres Ltd. v. CCE, 2001 (129) ELT 489 and that the unfinished knitted fabrics during the process of manufacturing blanket has no marketability. It was also pointed out that the above decision of the Tribunal was affirmed by the Supreme Court in 2001 (133) ELT A90.

(2.) The Commissioner (Appeals) noted the above submission made on behalf of the assessee. He also referred to paragraph 15 of the decision of the Tribunal referred above which read as follows:

(3.) The Commissioner thereafter proceeded to refer to a SCN issued to another processor M/s. Kochar Sung -up Acrylic Ltd., Amritsar where the assessee had filed declaration under Rule 173B declaring Acrylic Mink Blanket Fabric as description of the goods manufactured/produced by them. The Commissioner, therefore, took the view that the appellants cannot now rely on the decision of this Tribunal in the case of Shital Fibres Ltd. Even though the appellant pointed out that the SCN issued to M/s. Kochar Sung -up Acrylic Ltd. was later dropped by the Additional Commissioner, the Commissioner was not inclined to accept the contention raised by the appellant. He took his view that the Addl. Commissioner had not taken into consideration all the relevant materials before dropping the demand.