2009 (4) TMI 173

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....5911.90), an intermediate product captively consumed. They purchase/import nylon/polyester filament yarn which is first twisted and then woven to produce grey (unprocessed nylon/polyester fabric) and then captively consumed in the manufacture of the final products. The department was of the view that the intermediate product woven from nylon/polyester filament yarn fell for classification under chapter 54.06 and that the assessees had wrongly availed exemption under Notification No. 67/95-C.E. dated 16-3-1995 (captive consumption notification) for the reason that none of the final products cleared by them were leviable to Additional Excise Duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and the benefit of ....

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....n appeal against the classification of the goods and the extension of the benefit of the captive consumption notification by Commissioner vide his Order-in-Original No. 4/2005 dated 18-5-2005. Appeal No. E/117/06 is against the above order of the Commissioner. 3. On 19-12-2005, the Joint Commissioner of Central Excise dropped the demand of duty of Rs. 9,45,545/- on unprocessed fabrics of synthetic filament yarn captively consumed by SRF during the period 1-7-2004 to 8-7-2004 and dropped the demand for interest and proposal for penalty as raised in the show-cause notice dated 13-7-2005 holding that the goods fell for classification under CETSH 5406.10 but were eligible to exemption under Notification No. 67/95. The Revenue carried the mat....