Dual Demand of Central Excise Duty on Raw and Finished Goods: A Flawed Approach

Om Sai Textiles Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) CESTAT find that on the one hand the Revenue has made demand of central excise duty on goods consumed in the finished goods and on the other hand it is demanding duty on the finished goods which is wrong. Even if there is any duty demand, the same shall be restricted only upon finished goods. The raw material duty cannot be demanded as the same were consumed for intended purpose of manufacture. This aspect also not properly considered by the learned Commissioner. We also observed that the appellant have relied upon v...