2007 (6) TMI 320

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....yarn (POY) and polyester staple fibre, texturised yarn etc., applied for separate central excise registration for the texturised yarn unit and deregistration of the same from the factory which was in existence prior to segregation, in which the texturising was taking place along with the manufacture of POY. They were granted separate central excise registration and thus the texturised yarn unit became a separate factory. The assessees availed the benefit of serial No. 5A of the table to Notification 29/2004-C.E., dated 9-7-2004 as amended, in respect of texturised yarn manufactured out of POY procured from POY unit situate outside the texturised yarn unit. Show cause notice dated 31-5-2006 was issued to them proposing revocation of the sepa....

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....it of Notification 29/2004 was adjudicated by the Commissioner of Central Excise who upheld the duty demand raised in the show cause notice, in its entirety, together with interest and also imposed a penalty of amount equal to the duty on the assessees and a penalty of Rs. 1,00,000/- each on the Deputy General Manager (Finance) and the authorised signatory and excise manager of the assessee company, by his order dated 29-12-2006. Hardly had the ink run dry on this order confirming the demand, i.e. within a period of 10 days thereafter, the Commissioner (Appeals) allowed the appeal of the assessees against the order of the Deputy Commissioner revoking the central excise registration issued to the DTY division. 2. Against the duty con....