1996 (9) TMI 399

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.... S. Murugandi, DR, for the Respondents. [Order per : V.P. Gulati, Vice President]. -  The issue in the appeal relates to demand of duty in respect of tow and tops out which polyester fibre which was manufactured and cleared under exemption Notification 191/85, dated 28-8-1985 for the reason that duty on tow was not payable under Notification 84/87 only if polyester fibre made out of tow....

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.... paid on tow, polyester fibre is eligible for the duty free clearance while in case polyester fibre is cleared on payment of duty the tow cleared in terms of Notification 84/87 will be eligible for exemption. He has pleaded that subsequently by issue of Notification No. 76/92, dated 1-7-1992 duty on tow used for fibre manufactured for use in terms of Notification 191/85 by insertion of Sl. No. 54 ....

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.... duty, the tow which is relatable to this polyester fibre therefore had to be cleared on payment of duty. 4. We have considered the pleas made by both the sides. We observe that as a matter of social welfare, the Government of India in public interest issued Notification 191/85, dated 28-8-1985 exempting polyester fibre which was supplied to KVIC. In the scheme of levy under Tariff Heading....

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....he staple fibre stage. Even if under Notification 191/85 exemption stipulated is in respect of duty payable on staple fibre what has to be read into this is that the exemption is in respect of duty which has to be paid either at the tow stage or at the staple fibre stage. To interpret the Notification in the manner in which the Revenue has sought to read will only defeat the very purpose of the No....