Case Law Details
Maheshwari Texturisers Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
CESTAT find that the issue involved is of levy of NCCD in respect of Partially Oriented Yarn falling under Chapter 5402 consumed actively for the manufacture of Polyester Texturized Yarn. On the said issue, there are number of judgments as cited by the appellant and some of the judgments are in favor of the appellant. The issue involved is a neat question of law which involved interpretation of exemption provided in respect of NCCD. It is also a fact on record that appellant have declared their manufacturing process to the department and they were filing ER-1 returns regularly. Since the activity of entire manufacturing i.e. right from the polyester chips stage to the final stage i.e. Polyester Texturized Yarn including the manufacture of intermediate goods on job work basis were in the knowledge of the department, it cannot be said that there is any suppression of fact on the part of the appellant. In respect of the entire demand which is for the period from 01.07.2003 to 31.07.2004, the show cause notice was issued on 31.07.2008. The entire period is beyond one year, hence the demand under proviso to Section 11AC is not sustainable.
Accordingly, the demand is hit by limitation hence the impugned order is set-aside and the appeal is allowed only on limitation without going into merits of the case.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The brief facts of the case are that the appellant are engaged in the manufacture of excisable goods namely Polyester Texturized Yarn (crimped yarn) falling under Chapter 5402 of Central Excise Tariff Act, 1985. For the manufacture of texturized yarn, the appellant procured polyester chips falling and Chapter heading 39 and they sent it to job workers for manufacture of intermediate goods namely Partially Oriented Yarn falling under Chapter 54.02. After receipt from the job workers, the same is used actively for manufacture of their final product namely Polyester Texturized Yarn.
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