1995 (9) TMI 196

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....aging Partner Shri Ramkumar Kapur. Their plant and machinery have been ordered confiscation but allowed redemption on payment of fine of Rs. 10 lakhs. (vide Order-in-Original No. 19 of 1995 dated 9-5-1995). 2. Shri Iyer, the ld. Advocate, appearing for the applicants, pleads that they are job workers bringing polyester filament yarn for texturising. They had a Central Excise Licence, which the Department advised to surrender, because the texturised yarn was exempted, if made out of duty-paid yarn. They were also getting imported POY under DEEC scheme and they were under the bona fide belief that they would be continued to be eligible for exemption under Notification No. 178/83 and clearing such texturised yarn made out of duty-paid ....

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....allows exemption to texturised yarn manufactured out of imported base yarn under DEEC. This amendment is only clarificatory nature and cannot be construed to be applicable only prospectively. Moreover, even if duty is paid, they would be eligible to get drawback of the duty, since the entire manufacture is under the customs bond executed under DEEC scheme. On the ground of time bar, he pleads that they were holding a licence and only on the department's advice, they tendered it for cancellation. They were under the bona fide belief that they were eligible for exemption; Moreover because of the amending notification, the policy of the Government is clear that such texturised yarn manufactured out of POY is not saddled with any duty burden. T....