TaxTMI 
TaxTMI 
2002 (4) TMI 804
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....ssee have contravened the provisions of Rules 9(1), 49, 173B, 173E and 173G of the Central Excise Rules, 1944 read with Clause 4 of the Notification No. 8/2000-C.E., dated 1-3-2000 and Notification No. 8/2001, dated 1-3-2001 and Rules 4, 6 and 8 of Central Excise (No. 2) Rules, 2001 read with Clause 4 of Notification No. 8/2001, dated 1-3-2001 inasmuch as they have allegedly manufactured and removed 13,14,553 meters of Narrow Woven Fabrics elastic tape classifiable under Tariff sub-heading 5806.20 of the Schedule to the Central Excise Tariff Act, 1985 valued at Rs. 65,82,549.00 during the period December, 2000 to August, 2001 without payment of appropriate duty of Rs. 10,53,208.00. The show cause notice proposed denial of benefit of Notific....
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....rket, but used as fitting/component in the manufacture of Hosiery Goods namely "Jangia". As per the CBEC Circular No. 71/71/94-CX, dated 27-10-94, the brand name provision in the general SSI Scheme (vide Paragraph 4 of the Notification No. 1/93-C.E., dated 1-3-93) the benefit of the SSI exemption should not have been denied, because the fitting of the branded elastic tapes with the "Jangia" (as component/fitting) was to suit the manufacturing need of each Jangia manufacturer. So long the "branded elastic tapes" were supplied to the customers for further manufacture and the said tapes were not "traded" as such in the open market, the benefit of SSI exemption could not have been denied merely on the ground that it contained "branded name" of ....
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....a-'G' Division vide which allowed the benefit of SSI exemption in respect of their branded elastic tapes on basis of the clarification issued by the CBEC, New Delhi under Circular No. 71/71/94-CX, dated 27-10-94, and subsequent approval of their classification list No. 1/94-95, dated 1-7-94 of Branded Elastic Tapes allowing the benefit of SSI exemption under Notification No. 1/93-C.E., dated 1-3-93, they said that they submitted declarations under Rule 173B of Central Excise Rules, 1944 effective from 1-4-99 for the financial year ending in 31-3-2000 to the Assistant Commissioner, Central Excise, Kolkata-'G' Division to avail the benefit of SSI exemption in respect of their branded elastic tapes, and received neither any show cause notice, ....
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....well as their contentions at the time of personal hearing along with the relevant documents/records very carefully. I observe that the assessee have been manufacturing the narrow woven elastic tapes having brand name of Hosiery good manufactures. It is known as "elastic tapes" in the trade parlance. It is alleged in the notice that the said assessee should not get the S.S.I. exemption benefit as their manufactured goods bears 'brand name' of others in terms of Clause 4 of the Notification No. 8/2000-Central Excise, dated 1-8-2000 and Clause 4 of the Notification No. 8/2001-Central Excise, dated 1-3-2001. The noticee argued that their product 'branded elastic tapes' were not traded as such in the open market but used as fitting/component in ....