COMMISSIONER OF CENTRAL EXCISE Vs. SHITAL INTERNATIONAL

JUDGEMENT

(1.) In this appeal, the challenge has been made by the Revenue to the order -in -original dated 30 -7 -2003 vide which the Commissioner of Central Excise, Jalandhar has dropped the duty demand against the respondents.

(2.) The respondents are engaged in the manufacture of Knitted Fabric of Man -made Textile Material, Long Pile fabric falling under Chapter 60 (subheading 6001.12 of CETA, 1985); Knitted Hosiery Cloth of Cotton falling under sub -heading 6002.92 and Hosiery goods (Articles of Apparels knitted or crocheted all sorts) falling under sub -heading 6101 of Chapter 60 of CETA. They filed declaration under Rule 173B of the Rules wherein they gave the details of these products. They also disclosed in their declaration that they would be using acrylic fibre, cotton/polyester thread, dyes and chemicals to manufacture piled knitted fabric and detailed the various processes to be undertaken for the production of the goods.

(3.) Proceedings were initiated against the respondents through a show cause notice dated 22 -6 -01 for the recovery of the duty in respect of the knitted pile fabric cleared by them during the period in dispute (1988 -89 to 2000 -2001) on the allegations that they had cleared the same in the guise of knitted cloth (an exempted product) during that period without payment of duty. The Revenue also recorded statements of certain buyers who purchased the knitted pile fabric from the respondents before issuing the show cause notice.