https://www.taxtmi.com/caselaws?id=51721 Crimped waste and fibre waste arising during manufacture of polyester staple fibre were treated as inevitable by-products, not polyester staple fibre cleared in disguised form. Test reports from the manufacturer's premises and the buyer's end supported the conclusion that the material was waste of synthetic polyester fibre, and the evidence showed that intermediaries subjected it to sorting and cleaning before further use. The department failed to produce positive and direct evidence that the clearances were fibre rather than waste, and the pricing pattern did not support the allegation. The extended limitation plea was also weakened by the period of physical control. As the duty demand failed, the penalties on purchasers could not survive. en-us Fri, 18 Oct 2002 00:00:00 +0530 Mon, 27 Sep 2010 17:59:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51721 Crimped waste and fibre waste arising during manufacture of polyester staple fibre were treated as inevitable by-products, not polyester staple fibre cleared in disguised form. Test reports from the manufacturer's premises and the buyer's end supported the conclusion that the material was waste of synthetic polyester fibre, and the evidence showed that intermediaries subjected it to sorting and cleaning before further use. The department failed to produce positive and direct evidence that the clearances were fibre rather than waste, and the pricing pattern did not support the allegation. The extended limitation plea was also weakened by the period of physical control. As the duty demand failed, the penalties on purchasers could not survive. Case-Laws Central Excise Fri, 18 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51721