2014 (3) TMI 94

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s M/s. Technocraft Industries (I) Ltd., Thane, are a 100% EOU engaged in the manufacture of cotton yarn and cotton knitted fabrics falling under Chapters 52 and 61 of the First Schedule to the Central Excise Tariff Act, 1985. They import, as well as indigenously procure raw cotton and also fuel oil for generation of electricity. In the manufacture of cotton yarn, cotton waste arises which is cleared by the appellants without payment of excise duty by availing benefit of exemption under Notification Nos. 6/97-C.E., dated 1-3-1997 and 23/2003-C.E., dated 31-3-2003, as amended. The department was of the view that the appellants are required to pay customs/excise duty in respect of imported/indigenously procured raw cotton and fuel oil containe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....its that the applicable duty on cotton waste is 'nil' in terms of Notification No. 6/97-C.E. as well as 23/2003-C.E. Inasmuch as applicable duty has been paid, question of demand of any customs duty or excise duty on imported/indigenously procured raw cotton/fuel oils would not arise at all. The learned Counsel relies on the following decisions in support of his contentions :- 1.     Maharashtra Steel - 1997 (95) E.L.T. 342 (T) 2.     Supreme Industries Ltd. - 2002 (148) E.L.T. 484 (T) 2a.   Upheld by Supreme Court - 2003 (153) E.L.T. A91 (S.C.) 3.     Tata Iron & Steel - 1996 (81) E.L.T. 338 (T) 4.     Tata Yodogawa Ltd. - 1987 (32) E.L....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f excise leviable thereon under Section 3 of the Central Excise Act, 1944 (1 of 1944) or where such finished goods (including by-products, rejects, waste and scrap) or services are cleared to the warehouse appointed or registered under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 26/98-Central Excise (N.T.), dated the 15th July, 1998 or No. 46/2001-Central Excise (N.T.), dated the 26th June, 2001 or cleared to the warehouse authorised to carry out manufacturing process or other operation under Section 65 of the Customs Act, 1962 (52 of 1962) and under the Manufacture and Other Operations in Warehouse Regulation, or cleared to organizations which are entitled for duty free import of such good....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re such articles are cleared to the warehouse appointed or registered under notification of the Government of India in the Ministry of Finance, Department of Revenue, No. 26/98-Central Excise (N.T.), dated the 15th July, 1998 or No. 46/2001-Central Excise (N.T.), dated 26th June, 2001 or cleared to the warehouse authorised to carry on manufacturing process or other operation under Section 65 of the Customs Act, 1962 (52 of 1962) and under the Manufacture and Other Operations in Warehouse Regulations, 1966, or cleared to the holders of certificate for duty free import from Apparel Export Promotion Council and Council for Leather Export as specified in paragraph 6.9(e) of Foreign Trade Policy, without payment of duty." 6.2 A simple re....