TaxTMI 
TaxTMI 
1998 (6) TMI 264
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.... dated 1-3-1990 (sic) was denied. Under Notification No. 53/87-C.E., dated 1-3-1987, as amended, concessional rate of excise duty was prescribed in favour of artificial staple fibre and tow classifiable under sub-heading 5202.00 subject to the following conditions :- (i) such artificial staple fibre and tow was to be used for blending with cotton in the manufacture of cotton yarn falling under Heading No. 52.03; (ii) if the use of artificial staple fibre and tow was elsewhere than in the factory of production of such artificial staple fibre and tow then the procedure as set-out in Chapter X of the Central Excise Rules, 1944 was followed. The appellants were availing the benefit of this Notification. On 1-3-1989 by amending Noti....
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.... to the provisions of Chapter X of the Central Excise Rules, 1944 and submitted that the goods which were not utilised prior to the date of the withdrawal of the concession were in the nature of the surplus goods and duty had been correctly confirmed in respect of such stocks. 4. We have carefully considered the matter. The benefit of concessional rate of duty in favour of artificial staple fibre and tow under exemption Notification No. 53/87-C.E., dated 1-3-1987 (as amended) was conditional. The benefit was subject to the two conditions which have already been summerised above. It was a necessary condition that the artificial staple fibre and tow received under concessional rate of duty was used for blending with cotton for the manuf....
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....r which the goods were received on concessional rate of duty are not fulfilled is cast on the L-6 Licencee who used the goods. 6. The duty involved in these proceedings is Rs. 23,119.55. 7. The ld. Counsel had relied upon the Tribunal decision in the case of Collector of Central Excise v. Swan Mills Ltd. - 1991 (54) E.L.T. 131 (Tribunal). In that case the matter related to the captive use of yarn by composite textile mills in the manufacture of cotton fabrics. The cotton yarn when captively used by the composite mills in the manufacture of cotton fabrics enjoyed exemption from duty. This Notification granting exemption from duty in favour of cotton yarn was withdrawn on 14/15-7-1977. On that date the respondents in that case wer....