2008 (1) TMI 735

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....tariff area (DTA) without payment of duty during the period December, 1994 to July, 1995. They issued a show-cause notice dated 2-3-99 demanding duty of over Rs. 9.9 lakhs from the assessee and proposing penalties under various provisions of Central Excise Rules, 1944. Interest on duty was also demanded under Section 11AB and penalty was also proposed under Section 11AC of the Central Excise Act. The demands and proposals were contested. In adjudication, the original authority confirmed the above demand of duty against the assessee by invoking the extended period of limitation and imposed on them a penalty of Rs. 1 lakh. In the assessee's appeal against the decision of the original authority, ld. Commissioner (Appeals) set aside the demand ....

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....o Section 12 of the Customs Act in the context of quantification of Central Excise duty, duty of excise was leviable on the commodity. 3. Ld. Counsel for the assessee submits that, in the case of C.T. Cotton Yarn Ltd. v. CCE Indore, 2006 (202) E.L.T. 385 (S.C.), the Hon'ble Supreme Court remanded the question of excisability of cotton waste to this Tribunal and that, in the remanded proceedings, the Tribunal has held that cotton waste cannot be treated as a manufactured product vide Final Order Nos. 384-385/07, dated 27-6-07 in Excise Appeal Nos. 1715 & 1716/97, of the Principal Bench, New Delhi [2007 (218) E.L.T. 233 (T)]. 4. Ld. SDR has reiterated the grounds of the Revenue's appeal and also has opposed the assessee's appeal. ....