2000 (7) TMI 140

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.... confirmed upto 19-3-1990 amounting to Rs. 42,002/-. It has also been held that thereafter for the subsequent period such duty not being leviable is not demandable. The second issue decided is concerning the terry towels manufactured out of Weft Pile Knitting machine and it is held that the same is exempt under Notification Nos. 109/86 and 65/87 of Central Excise. A penalty of Rs. 5000/- has been imposed in view of duty liability on cotton yarn mentioned above. 2.The assessee has filed a cross appeal mentioned above against the order impugned noted above with respect to the duty liability confirmed on cotton yarn. 3.In the other appeal noted above filed by the assessee, the issue is the same as their claim for exemption of terry towels ha....

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....erein the Hon'ble Tribunal had rejected the appeal filed by the department after considering the import of Note 5 to Section XI and allowed benefit of the exemptions to the assessee in respect of terry towelling fabrics. He therefore submits that the ratio thereof would be clearly applicable to the facts of this case and the Revenue appeal is required to be rejected while their appeal is required to be allowed accordingly. With regard to their cross appeal on cotton yarn noted above, ld. Advocate does not wish to now press the same. 7.On careful consideration of these submissions and records of the case, we find that the Tribunal had considered the classification of terry towelling fabrics under Heading 58.02 or only terry towels under Hea....