2002 (1) TMI 356

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....r the Appellant. Shri Atul Dikshit, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. -  This is an application, filed by M/s. Nath Soot Gola Factory for waiver of pre-deposit of Central Excise duty amounting to Rs. 11,65,974/- and penalty of Rs. 10 lakhs confirmed by the Commissioner (Appeals). Shri Vivek Kohli, learned Advocate, submitted that the applicants are enga....

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....yarn being dressed for use as Sewing Thread; that this treatment, according to Explanatory Note, is designed to facilitate the use of textile yarn as sewing thread, for example, by giving it anti-fraction property or thermal resistance preventing the formation, of static electricity or improving its appearance. Such treatment involves the use of substances based on silicon, starch, wax, paraffin, ....

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....on for the department to issue the present show cause notice on 30-7-98. He also mentioned that the applicants are eligible to the benefit of exemption under Notification No. 35/95-C.E., dated 16-3-95 as amended by Notification No. 84/95 dated 18-5-95. 2. Opposing the prayer, Shri Atul Dikshit, learned SDR, submitted that the applicants had neither filed any reply to the show cause notice ....

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....sion in the case of Bakelite Hylam Ltd. v. CCE, Hyderabad, 1998 (101) E.L.T. 561 (S.C.). 3. We have considered the submissions of both the sides. In view of Note 3 to Section XI of the Central Excise Tariff, for the purpose of Heading Nos. 52.04, 54.01 and 55.08 for being treated as sewing thread one of the condition specified is that yarn should be dressed for use as sewing thread. The ap....