2010 (9) TMI 1041

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....ishnan, Advocate, for the Appellant. Shri S.K. Bhaskar, JDR, for the Respondent. ORDER Appeal No. 5/472/2008 is arising out of the order in appeal No. 19-(RKS)ST/JPR-I/2008-dated 24-1-2008 relating to the upholding of demand of duty and imposition of penalty by the original authority for the period April 1997 to June 1998. 1.2 Appeal No. E/1430/2010 is against the order of the Com....

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....velopment, earlier known as Department of Industrial Policy and Promotion of Government of India. According to the permission granted by the Government, wastage permitted was 10.80% for sheared crammed fancy border terry towel and 5.66% for sheared terry towel without border. These norms were fixed vide letter dated 16th July, 1998 revising upwards the earlier norms prescribed. Show cause notices ....

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....held by the Commissioner (Appeals). 5. Learned Advocate for the appellants submits that the entire raw materials procured by the appellants duty free stand properly accounted. They have also used the entire raw materials for manufacturing unsheared terry towels. Merely because, the wastage of yarn during shearing was slightly higher than what was prescribed by the Department of Industrial ....

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....xed by the Department of Industrial Development is similar to SION norm and generation of waste beyond norms fixed would imply that the conditions under which the inputs have been procured duty free have been violated and therefore, the demands under Rule 196 of Central Excise Rules, 1944 have been validly made. 7. I have carefully considered the submissions from both sides and perused the....