2007 (11) TMI 196 - AT - Central Excise

Appeal Upheld in Polyester Yarn Confiscation Case

COMMISSIONER OF CENTRAL EXCISE, VAPI Versus SUNFLAG FILAMENTS LTD.

COMMISSIONER OF CENTRAL EXCISE, VAPI Versus SUNFLAG FILAMENTS LTD. - 2008 (224) E.L.T. 281 (Tri. - Ahmd.) Issues: Department's appeal against Commissioner (Appeals) order, Exclusion of polyester filament yarn from job work, Confiscation of polyester twisted yarn, Application of Rule 4(5)(a), Appeal by the DepartmentIn this case, the Department filed an appeal against the order of the Commissioner (Appeals) related to the exclusion of polyester filament yarn from job work. The issue arose when officers found that the respondent was undertaking job work of twisting with polyester texturised yarn received from another unit. The original authority confiscated the polyester twisted yarn but allowed redemption upon payment of a fine and imposed penalties. The Commissioner (Appeals held that although job work facility was excluded for polyester twisted yarn, the respondent availed the facility under Rule 4(5)(a) and allowed the appeal. The Department, dissatisfied with this decision, filed an appeal.Upon hearing the arguments, the Member (T) noted that the goods were permitted to be cleared under Rule 4(5)(a) by one unit for processing by another unit. It was observed that the general provision allowing such clearances under Rule 4(5)(a) had not been amended to exclude polyester twisted yarn. Therefore, the decision of the Commissioner (Appeals) to vacate the confiscation and set aside the penalty was deemed legal and proper. Consequently, the appeal by the Department was rejected, and the Cross-objection was disposed of. The judgment underscores the importance of interpreting relevant rules and notifications in determining the legality of actions taken in relation to job work processes involving specific types of goods.