CCE Vs. ASIA TEXTILES ZENITH WEAVES LTD.

JUDGEMENT

(1.) THE above appeals involve a common issue and are hence heard together and disposed of by this common order.

(2.) BOTH the respondents here in are engaged in the manufacture of texturised/crimped yarn falling under Chapter heading 54.03 of the schedule to the Central Excise Tariff Act, 1985. Small Scale Notification No. 1/93 dated 28.2.1993 was amended by Notification No. 90/94 dated 25.4.1994 incorporating the goods falling under above mentioned chapter heading as "specified goods" for the purpose of S.S.I, benefit which was claimed by the respondents. Subsequently, vide Notification No.23/94 -CX (NT) dated 20.5.1994, Rule 56A was deleted from the Central Excise statute and modvat benefit was extended to the product covered by chapter heading 54.03 by Notification No. 24/94 dated 20.5.94. The department was of the view that since the Notification No. 1/93 was effective from 1.4.1994, clearances from this dated should be computed and not only from the date when the assesses/respondents opted for the benefit of the notification. On this basis, show cause notices were issued for recovery of the differential duty during the period after first clearance value of Rs. 50 lakhs was crossed. The demand was confirmed by the adjudicating authority against whose orders appeals were filed, the Commissioner (Appeals), the lower appellate authority set aside the order of the adjudication holding as under:

(3.) HENCE , these appeals by the Revenue, which contends that the relevant date for computation should be 1st April, 94, which is the date of commencement of the financial year.