TaxTMI 
TaxTMI 
TaxTMI 
1998 (8) TMI 326
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....er the declaration filed by them to their jurisdictional Superintendent of Central Excise under the erstwhile Notification No. 111/78, dated 9-5-1978, they claimed exemption in respect of HDPE Woven Sacks in terms of Notification No. 223/86-C.E., dated 3-4-1986, as amended. 1.2. Show cause notice dated 28-8-1991 denying the benefit of exemption Notification No. 223/86-C.E., and raising duty of HDPE Woven Sacks/Bags manufactured and used by the appellants during the period from 2-12-1986 to 31-12-1989, was issued by invoking the larger period of limitation. Before the Commissioner, the appellants defended them on the merits as also on the point of limitation, but did not succeed. Vide the impugned order, the demand of duty of Rs. 9,60,....
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....d :- "For the purpose of this notification, woven sacks would be deemed to have been woven on circular looms if such sacks are made out of fabrics woven on circular looms." 4. The proviso to the original Notification as amended from time to time, clearly shows that the exemption is not to bo extended to the woven sacks if the same are manufactured on circular looms. There is also no dispute about the fact that the HDPE sacks have been woven out of the HDPE tubes/fabrics in tubular form. The fact that the sacks in question were manufactured out of the fabrics woven on circular looms, is not disputed by the appellants inasmuch as the HDPE tubes cannot be manufactured without the use of circular looms. Shri S.K. Bagaria, learned Advocat....
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.... reported in 1996 (84) E.L.T. 261 (Tribunal), we find that it has been observed by the Tribunal that some difficulty was being experienced in administering the notification, and the second Notification No. 57/90 was issued specifying as to what is meant for sacks woven on circular looms. The said Notification was clearly clarificatory in nature and cannot be treated as altering the situation which existed earlier. Accordingly, following the above judgment, we do not find any merits in the appellants' case as regards the availability of Notification in question. 6. As regards the point of limitation, show cause notice has been issued clearly beyond the normal period of six months as available to the Department under Section 11A. The ap....
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....ever disclosed in their declaration that out of the raw-materials, the woven sacks have been manufactured where fabrics are woven on circular looms. The adjudicating authority has observed that from the settled law, it was the duty of the appellant firm to satisfy all the conditions of the Notification before availing the benefit of the same and a mere claim to avail the benefit is not sufficient. The appellants should have mentioned/disclosed in their declaration that sacks/bags were being manufactured by them out of fabrics woven on circular looms. This having not been done by them, the longer period is rightly invoked by the Department, submits the learned JDR. 7. We find that the disclosure made by the appellants in their declarat....