1999 (8) TMI 464

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....ssistant Collector of Central Excise to be meant for use in the manufacture, or repair, or both, of fishing nets and parachute cords. The appellants availed themselves of this exemption. The impugned order relates to certain quantities of yarn cleared under this exemption during June, 1987 to February, 1991. 2. The appellants were clearing the yarn after payment of duty to job workers, for converting them into twine and thereafter supplying them from their godown for use in the manufacture or repair of fishing nets and parachute cords. The impugned order confirmed duty on the differential quantity between the yarn cleared from the factory and twine cleared from the godown, on the ground that the differential quantity represents yarn....

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....ise, 1989 (40) E.L.T. 159 that in such cases extended period is not attracted. They have also submitted that they were working under the Physical Control Procedure during the relevant period and on account of that also extended period for demand is not permissible as held in the following judgments :- 1. LML Ltd. v. Collector of Central Excise, 1991 (51) E.L.T. 434 2. Vanitha Snuff Works v. Collector of Central Excise, 1995 (77) E.L.T. 178 3. A.Rathinam v. Collector of Central Excise, 1992 (60) E.L.T. 451. The appellants have also submitted that the demand is time barred as there is no warrant in the present case to conclude that the short levy, if at all, has taken place on account of collusion, wilful misstateme....

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....e for industrial purpose does not mean that the original clearance was not meant for the purposes mentioned in the notification's such sale was limited to quantities not usable for fishing net manufacture or repair and the sale was incidental. That the appellants had paid duty on the quantities so diverted also shows that there was no misutilisation of the exemption in respect of goods other than actually used for the purposes stipulated in the notification. He also submitted that the entire facts of the case were known to the department as they had sought permission from the department for utilisation of the waste yarn in the manufacture of caprolactum in their factory. Shri Datar referred in particular to the letter of the Assistant Colle....