2003 (11) TMI 402

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..... Shri A. Jayachandran, DR, for the Respondent. [Order per : S.L. Peeran, Member (J) (Oral)]. -  This appeal arises from Order-in-Original No. 36/2001 (Commr.), dated 20-9-2001 passed by the Commissioner of Central Excise, Coimbatore. The appellants are manufacturers of cotton yarn. They also procure raw material of cotton from local market as well as import from the foreign countrie....

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....erification, the benefit was to be given. In the instant case, the department proceeded to issue show cause notice on the ground that appellants had not maintained separate manufacturing unit for the purpose of utilizing domestic indigenous cotton for clearances through domestic area. On the said premise, the demands were confirmed. Hence this appeal. 2. Ld. Advocate submitted that the Com....

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.... at 15% of Customs has not been granted and wrong rate of duty has been arrived at. So also the penalty is not imposable under Rule 173Q as the said Rule applies to SRP unit under Chapter VII. He also submitted that their unit comes under Chapter V(A). Therefore, penalty is not imposable under Rule 173Q of Central Excise Rules. 3. Ld. SDR submitted that the appellants are required to maint....

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....sioner has erred in not applying the Circular No. 442/8/99-CX., dated 4-3-99. Even in terms of this circular, the authorities were required to see the fact that indigenous and imported items were separately used for manufacture and clearance. It was clearly directed that there was no need to have separate manufacturing line. However, as the departmental officers were continuing to commit mistake i....