MADURA COATS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal arises from Order -in -Original No. 20/2002, dated 30 -4 -2002 by which the Commissioner of Central Excise, Madurai has confirmed a demand of Rs. 62,03,558/ - as Central Excise duty towards blended yarn removed during the period from November 1999 to 17 -11 -2000 under Section 11A(2) of the Central Excise Act, 1944. The appellants had paid Rs. 51,04,614.00 on 22 -9 -2001 vide PLA debit entry No, 34 which has been adjusted towards Additional Excise Duty (CVD) and the remaining amount of SAD to the tune of Rs. 10,98,944/ -has been directed by the Commissioner to be paid. However, he has dropped the proceedings initiated for recovery of interest and for imposition of penalty. Revenue has not filed any appeal on this portion of the order.

(2.) THE facts of the case are that the officers attached to the Regional Unit of the Directorate of Central Excise Intelligence, Madurai upon gathering intelligence that the appellants, a 100% EOU engaged, inter alia, in the manufacture of blended polyster cotton yarn falling under Chapter Heading 55.09 of CETA, 1985 were evading payment of duty in respect of Grey Fabrics and Blended Yarn, made a visit to the unit on 3 -11 -2000. During the course of verification, it was found out that MCL manufactured and cleared the said blended yarn to their own units at Aladiyur and Madurai without payment of duty by claiming full exemption under Advance Release Order (ARO) against Advance Licence Numbers dated 6 -8 -99 and 30 -3 -2000. On the basis of statements recorded and various details collected, a show cause notice dated 11 -12 -2000 was issued calling upon them to explain as to why the amounts should not be collected from them. The appellants filed their replies and after due consideration of the matter, the Commissioner passed the impugned order. The findings recorded in paras 9 to 17 are reproduced herein below: -

(3.) WE have heard learned Vice President Shri S.S. Thakur for the appellants and learned SDR Smt. R. Bhagya Devi for the Revenue.