GOKAK MILLS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal arises out of and is directed against the impugned order dated 28 -4 -2000 passed by the Commissioner of Customs and Central Excise (Appeals), Bangalore.

(2.) ARGUING for the appellant Sh. J. Shankar Raman, Ld. Adv submitted that short point to be considered in this case is whether additional duty of Excise is exempted or not in terms of Notification 214/86 CE dated 25 -3 -86.

(3.) FACTS of the case in brief are that the appellants are engaged in the manufacture of Nylon Tyre Cord Fabrics, which attract, an additional excise duty at the rate of 5% leviable under the Additional duties of Excise (Goods of Special Importance) Act, 1957 for the period from 1 -2 -97 to 31 -3 -97. The appellants received raw materials namely Nylon Filament Yarn from the Tyre companies and manufactured the Tyre Cord Fabrics and sent the same to raw materials suppliers i.e. Tyre Companies by following the procedure prescribed under Notification No 214/86 -CE dated 25 -3 -1986. The appellants have also been following the job work procedures under rule 57F (3) and 57 -F(4) of the Central Excise Rules. It was the contention of the party before the authorities below, since the Raw Materials are received under challans prescribed under Rule 57F (3) and 57F(4) and the processed goods are sent back to Tyre manufactures after the job work by following the procedures prescribed under Notification No 214/86 under the same challans prescribed under rule 57F(3) and 57F (4), they are not liable to pay any Additional Excise duty and the same to be borne by Tyre Companies. They have become unsuccessful before the authorities below. Hence this appeal.