M/S. CENTURY YARN Vs. CCE, BHOPAL

JUDGEMENT

(1.) M /s. Century Yarn have filed this appeal being aggrieved by the Order of the Ld. Commissioner (appeals) holding that

(2.) ARGUING the case for the appellant Shri K.K. Andnd, Ld. Counsel submits that the appellant is a 100% Export Oriented Unit for the manufacture of cotton yarns; that in terms of the Export & Import Policy, the appellant was permitted to sell a part of the goods to the domestic area; that the goods sold within the domestic area are subjected to Central Excise Duty. He submitted that under the additional duties of Excise Act, 1978 and additional duty is levied equal to 155 of the total amount of duty chargeable on the goods; that Item No. 3 in the Schedule specified 'cotton that is to say, all goods falling within Chapter 52'; that cotton waste which is generated during the course of manufacture of cotton yearn which was classifiable under Chapter Heading No. 52.02 was not covered; that no duty was payable on Cotton Hard/Sort Waste; that despite this, the Asstt. Commissioner demanded duty amounting to Rs. Asstt. Commissioner demanded duty amounting to Rs. 2,63,204; that to avoid coercive process, the appellant deposited the amount. It was submitted by the Ld. Counsel that no additional duty was leviable on cotton waste. He submitted that their case is fully covered by the decision of the Delhi Bench of this Tribunal in the case of Commissioner of Central Excise, Indore vs Maikal Fibre Ltd. Reported in 2001 (127) ELT.589 . He submitted that this Tribunal in para 6 of this order held as under:

(3.) MS . Ananya Ray, Ld. DR reiterates the findings of the authorities below.