2025 (3) TMI 898

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....as manufacturing of 'quilt' falling under CETH 9404 90 19. 2. The brief facts are the Appellant is manufacturing rubberized coir sheets and mattresses, which were exempted from payment of Central Excise duty vide Notification No.6/2006-CE dated 01.03.2006. During course of manufacture of Rubberized coir mattresses, Appellant is also manufacturing 'quilt panel'. Since the quilted material are only part of the rubberized coir mattresses, Appellant was claiming exemption as per the above Notification. However, alleging that the quilted material manufactured and captively consumed in factory by the Appellant should be classified under Chapter Heading 9404 90 19 and not under Chapter Heading 5811 as textile material as declared,....

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....mediary product during the process of manufacture of 'coir mattress' and it is exclusively used by the Appellant. The Ld. Counsel further submits that the 'quilted panels' are manufactured and used in the factory of the Appellant, itself and are not sold in the market. Since these are exclusively used for furnishing of finished mattress which are exempted from payment of Central Excise duty, no demand can be confirmed on the intermediary product. 5. The Learned Counsel further submits that the Central Excise Tariff Heading (CETH) 9404 cover the final finished products like 'quilts'. The quilting done by the Appellant is not completed as it is not stitched on four sides and comes to being only as part of the mattress....

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....e extended period of limitation is unsustainable. 7. The Learned AR reiterated the finding in the impugned order and submits that since the final product is not subject to excise duty, as per Rule 8, when excise goods are not sold by the assessee but are used for consumption by him or his behalf in the production of other articles, the value shall be 110% of the cost of production or manufacture of such goods. Therefore, in the instant case, the value should be 110% of the cost of production and same has been adopted rightly for valuation and demand of duty. 8. Heard both sides and perused the records. 9. It is an admitted fact that the the 'quilt panel' manufactured by the Appellant are exclusively used for the manufacture of th....