https://www.taxtmi.com/caselaws?id=107585 Tow used in manufacturing polyester staple fibre was treated as utilised in manufacture where waste was a technological inevitability under the third proviso to Rule 9(1) of the Central Excise Rules, and duty was not sustainable to the extent the fibre was cleared for export or under exemption. The extended period of limitation and penalty were also held unsustainable because the factory remained under departmental physical control, earlier proceedings had already disclosed the tow usage, and the department had knowledge of the relevant facts. The duty demand and consequential penalty were therefore set aside. en-us Thu, 12 Jun 2003 00:00:00 +0530 Fri, 23 Mar 2012 15:26:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=107585 Tow used in manufacturing polyester staple fibre was treated as utilised in manufacture where waste was a technological inevitability under the third proviso to Rule 9(1) of the Central Excise Rules, and duty was not sustainable to the extent the fibre was cleared for export or under exemption. The extended period of limitation and penalty were also held unsustainable because the factory remained under departmental physical control, earlier proceedings had already disclosed the tow usage, and the department had knowledge of the relevant facts. The duty demand and consequential penalty were therefore set aside. Case-Laws Central Excise Thu, 12 Jun 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=107585