COMMISSIONER OF CENTRAL Vs. OM SHANTHI SATINS LTD.

JUDGEMENT

(1.) THIS is a Revenue appeal against portion of the Order -in -Original No. 18/2003 dated 27.5.2003. The Revenue proceeded to demand duty in respect of removal of Grey Cotton Fabrics on the allegation that the assessee had not properly determined and discharged the duty correctly. It was also alleged that Poly Vinyl Alcohol (PVA) used in the manufacture of 100% Grey Cotton Fabrics is a raw material and not a consumable and value is required to be added in the value of the assessable value. However, this was disputed by the assessee on the ground that PVA is used as a sizing chemical and not a raw material and the same is a consumable and therefore, its value is not required to be added in the value of the assessable value. The Commissioner after due consideration of the entire evidence on records and the process of manufacture accepted the assessee's plea that PVA is used as a sizing agent and it is not a raw material and its value is not required to be added in the assessable value. The Revenue is aggrieved with this finding.

(2.) THE Commissioner had also confirmed demands under Section 11A(1) of Central Excise Act. The assessee had challenged the confirmation of demands before the Tribunal and the Tribunal by Final Order No. 1461/2003 dated 14.11.2003 remanded the matter for denovo consideration. The Revenue in this appeal contends that the Commissioner was not justified in dropping the demands and for considering the PVA as not a raw material but a consumable. He has taken several grounds in the matter.

(3.) WE have heard both sides in this case.