https://www.taxtmi.com/caselaws?id=115945 Cotton yarn removed from one factory to another under Rule 96E of the Central Excise Rules was treated as removal without payment of duty. The rule operates as a procedural exemption mechanism for such inter-factory clearances, and a duty demand contrary to that statutory scheme could not be sustained. Because the penalty rested on the same unsupported demand, it also had no legal basis. The CESTAT, Chennai held that both the duty demand and penalty were illegal and set them aside in favour of the assessee. en-us Wed, 23 Feb 2005 00:00:00 +0530 Tue, 05 Jun 2012 18:42:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115945 Cotton yarn removed from one factory to another under Rule 96E of the Central Excise Rules was treated as removal without payment of duty. The rule operates as a procedural exemption mechanism for such inter-factory clearances, and a duty demand contrary to that statutory scheme could not be sustained. Because the penalty rested on the same unsupported demand, it also had no legal basis. The CESTAT, Chennai held that both the duty demand and penalty were illegal and set them aside in favour of the assessee. Case-Laws Central Excise Wed, 23 Feb 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115945