GINNY INTERNATIONAL LIMITED Vs. CCE

JUDGEMENT

(1.) The issue involved in this appeal filed by M/s. Ginny International Limited is whether the benefit of Notification No. 8/97 -CE dated 1.3.97 is available to the Appellants in respect of the goods cleared by them to the Domestic Tariff Area.

(2.) We heard Shri K.K. Anand, learned Advocate and Shri V. Valte, learned SDR for the Revenue. The learned Advocate mentioned that the Appellants have already deposited an amount of Rs. 2 lakhs out of total demand of duty of Rs. 6,27,163. In view of this, we stay the recovery of the remaining amount of duty and the entire amount of penalty. We also take up the appeal itself for hearing with the consent of both the sides. The Appellants, a 100% Export Oriented Undertaking manufacture cotton yarn, cotton woven fabrics and knitted fabrics which were cleared by them to the DTA availing the benefit of Notification No. 8/97 -CE. The Deputy Commissioner, under the Adjudication Order No. 303/99 -2000 dated 31.1.2000, confirmed the demand of duty and imposed a penalty on the ground that the imported wax washer was used by them in the manufacture; that the Commissioner (Appeals) under the impugned order has rejected their appeal holding that the wax washer is raw material for the manufacture of cotton yarn and accordingly the appellants are not entitled to the benefit of Notification No. 8/97 -CE. Notification No. 8/97 -CE exempts the finished goods, reject, waste and scrap produced or manufactured in a EOU wholly from the raw material produced by the manufacturer in India and allowed to be sold in India in accordance with the provisions of sub -para A, B, C, D and F of para 9.9 or para 9.20 of the Export and Import Policy. It has been fairly admitted by both the Advocate and the Respondents that the issue involved stands decided by the Tribunal in the case of CCE, Indore v. Century Denim (EOU), 2001 (129) ELT 657 (T) and the decision in the case of Vimal Textile Industries v. CCE, Jaipur, Final Order No. 21 -22/2003 dated 15.1.2003. The decision of the Tribunal in the case of Century Denim has been affirmed by the Supreme Court. In Vimal Textiles Industries, the Tribunal had denied the benefit of Notification No. 8/97 as the Appellants on their own used imported raw materials in the process of manufacture of the goods cleared in DTA. As in the present appeal also the Appellants have used the imported wax, the benefit of Notification No. 8/97 is not available to them. We, therefore, uphold the demand of duty as confirmed by the Commissioner (Appeals) in the impugned order. We, however, agree with the learned Advocate that it is not a fit case warranting imposition of any penalty. We, accordingly, set aside the penalty imposed on the Appellants. The appeal is disposed of in the above terms.