COMMISSIONER OF CENTRAL EXCISE Vs. MADURA COATS LTD.

JUDGEMENT

(1.) THE Revenue has challenged the order of Commissioner (Appeals) on the ground that the samples of yarn and fabrics which were drawn by the respondents during the process of manufacture, were in manufactured condition and these were liable for duty.

(2.) SHRI S.S. Thakur, Vice President of the respondent's manufacturing unit pleaded that the assessees are manufacturing yarn and fabrics and they are taking samples during the process of manufacture to test the quality of the yarn or of fabric. The samples are not taken after goods have reached the finished stage. The samples which are taken during the manufacturing process are duly accounted for by them as they are maintaining proper records in their laboratory and on the basis of their records only, the show cause notice was issued. He also pleaded that the Commissioner (Appeals) in his earlier Orders, in their own case, had given a finding that these samples in dispute are drawn at the intermediate stage during the process of manufacture and after test, these are destroyed. Therefore, no duty is chargeable from these samples. He pleaded that Revenue has not filed any appeal against the earlier orders of the Commissioner (Appeals).

(3.) SHRI S.S. Thakur contested this observation of the original authority stating that these samples, which are being discussed in the Order of the original authority, were samples of the finished goods and not samples which were taken at the intermediate stage. The dispute in their case is of samples which are drawn in the intermediate stage. The Commissioner (Appeals) has given a clear finding that they are maintaining proper records that these samples are drawn at intermediate stage of the manufacture and the same are destroyed after test. He, therefore, pleads that no duty is chargeable.