1999 (12) TMI 312

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.... Shri R.K. Roy, JDR, for the Respondent. [Order per: Archana Wadhwa, Member (J)]. - The appellants are engaged inter alia in the activity of bleaching and dyeing of grey fabrics procured by them from outside parties. Duty of Rs. 22,29,498/-and penalty of Rs. 2 lac has been confirmed and imposed respectively on the appellants by the Commissioner, C. Ex., Calcutta on the ground that the appel....

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....brics. As such no separate duty can be charged at the bleaching stage in respect of dyed fabrics as bleaching is never undertaken before dyeing. Shri Roychowdhury further submits that they invited the department for making the on-the-spot verification and examination of the correct factual position which the department failed to do so and instead proceeded on factually incorrect charges. Learned A....

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....mpted in terms of 3rd Proviso to Rule 9(1) and Rule 49(4). The said provisions were rescinded w.e.f. 20-5-1994 by issuance of Notification No. 23/94, but at the same time the facility of Modvat credit was extended to the textile products by issuance of another Notification No. 24/94-C.E. (N.T.), dated 20-5-1994. He submits that even if the duty is payable by them on the bleached fabric they would ....

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....2. He also submits that bleached fabrics were specifically exempted w.e.f. 11-8-1994 by Notification No. 121/94-C.E. As such he submits that this reflected upon the intention of the Govt. to charge duty at each and every stage of the process.  5.  We have carefully considered the submissions made from both the sides and have gone through the impugned order. We find that the appellants....