COMMISSIONER OF CENTRAL EXCISE Vs. MOHAN SPG. MILLS

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue against the order dated 30 -1 -1995 passed by the Collector dropping the proceedings and discharging the show cause notice dated 12 -8 -1991, against the respondents.

(2.) THE facts giving rise to his appeal may briefly be stated as under :

(3.) THE respondents are engaged in the manufacture of yarn falling under Chapters 52 and 55 of the CETA. They cleared 189054 kgs. of acrylic yarn falling under sub -heading 5504.32 of the CETA, made out of 100% fabrics [acrylic fibres] during the period 1 -2 -1991 to 24 -7 -1991 at a nil rate of duty. They were served with a show cause notice dated 12 -8 -1991 for paying the short duty of Rs. 45,37,296/ - under Section 11A of the Central Excise Act. That notice was contested by them on the plea that in their classification lists effective from 1 -3 -1986 onwards they classified the product under subheading 5504.32 of the CETA, and those were approved and accepted by the successive Assistant Collector from time to time. Therefore, the demand raised through the show cause notice is not sustainable against them.