Commissioner of Central Excise, Jalandhar Vs. M/s. Rajiv Textile Industries and Anr.
EmailAppeal: Civil Appeal Nos. 7524-7525 of 2004
(From the Judgment and Order dated 25.5.2004 of the Central Excise, Customs and Service Tax Appellate Tribunal, New Delhi in F.O. Nos. 485-486/2004-B in A. Nos. E/1248 and 1249 of 2003)
(From the Judgment and Order dated 25.5.2004 of the Central Excise, Customs and Service Tax Appellate Tribunal, New Delhi in F.O. Nos. 485-486/2004-B in A. Nos. E/1248 and 1249 of 2003)
Petitioner: Commissioner of Central Excise, Jalandhar
Respondent: M/s. Rajiv Textile Industries and Anr.
Apeal: Civil Appeal Nos. 7524-7525 of 2004
(From the Judgment and Order dated 25.5.2004 of the Central Excise, Customs and Service Tax Appellate Tribunal, New Delhi in F.O. Nos. 485-486/2004-B in A. Nos. E/1248 and 1249 of 2003)
(From the Judgment and Order dated 25.5.2004 of the Central Excise, Customs and Service Tax Appellate Tribunal, New Delhi in F.O. Nos. 485-486/2004-B in A. Nos. E/1248 and 1249 of 2003)
Judges: RUMA PAL, ARIJIT PASAYAT & C.K. THAKKER,JJ.
Date of Judgment: Apr 15, 2005
Appearances:
Mr. A.S. Rao, Mr. R. Aggarwal, Mr. T.A. Khan, Mr. P. Parmeswaran and Mr. B. Krishna Prasad, Advocates for the Appellant.
Mr. Sudhir Malhotra and Mr. Sanjeev Malhotra, Advocates for the Respondents.
Mr. Sudhir Malhotra and Mr. Sanjeev Malhotra, Advocates for the Respondents.
Head Note:
EXCISE
Central Excise Tariff Act, 1985
Chapter 52 and Tariff Heading 5911.09 – Central excise duty – Classification of goods – Grey cotton canvas cloth and grey cotton fabrics – If to be classified under Chapter 52 or Tariff Heading 5911.09. Held that in view of the decision in Jyoti Overseas (2001) 130 ELT 446(SC) which has been approved in Simplex Mills’ case (JT 2005 (3) SC 1), the goods in question are classifiable under Chapter Heading 52 only attracting ‘nil’ rate of duty specified at the relevant time and not under Tariff Heading 5911.09. (Paras 3, 4)
Central Excise Tariff Act, 1985
Chapter 52 and Tariff Heading 5911.09 – Central excise duty – Classification of goods – Grey cotton canvas cloth and grey cotton fabrics – If to be classified under Chapter 52 or Tariff Heading 5911.09. Held that in view of the decision in Jyoti Overseas (2001) 130 ELT 446(SC) which has been approved in Simplex Mills’ case (JT 2005 (3) SC 1), the goods in question are classifiable under Chapter Heading 52 only attracting ‘nil’ rate of duty specified at the relevant time and not under Tariff Heading 5911.09. (Paras 3, 4)
Cases Reffered:
1. Commissioner of Central Excise, Nagpur v. M/s. Simplex Mills Co. Ltd. (C.A. Nos. 2816-2818/2002) (Para 4)
2. Jyoti Overseas Limited v. CCE, Indore (2001 (130) ELT 446) (Para 3)
3. M/s. Simplex Mills Co. Ltd. v. CCE Nagpur (1993 (49) ECR 147) (Para 2)
2. Jyoti Overseas Limited v. CCE, Indore (2001 (130) ELT 446) (Para 3)
3. M/s. Simplex Mills Co. Ltd. v. CCE Nagpur (1993 (49) ECR 147) (Para 2)
JUDGEMENT:
RUMA PAL, J.
1. During the years 1995-96, 1996-97 and 1997-98, the respondent Textile Mills cleared grey cotton canvas clothes and grey cotton fabrics, without payment of any central excise duty on the ground that the products were classifiable under Chapter 52 of the Central Excise and Tariff Act, 1985 under which the rate of excise duty was nil at the relevant point of time. According to the Revenue Authorities the goods were classifiable under sub-heading 5911.90 of the Tariff and liable for central excise duty at the rates specified on the Tariff. A show cause notice was issued on 27th December, 2000 as to why central excise duty should not be recovered and why penal action should not be taken against the respondent. In the meanwhile the respondent- Textile Mills were closed down in September, 1997 and M/s. Moti Lal Traders started functioning from the same premises with the same machinery.
2. The Additional Commissioner of Central Excise relying on the case of M/s. Simplex Mills Co. Ltd. v. CCE Nagpur1: confirmed the demand of duty and also imposed personal penalty on the respondent and ordered interest on the delayed payment. Duty was also demanded from M/s. Moti Lal Traders and personal penalty as well as interest was levied.
3. The respondent and M/s. Moti Lal Traders both preferred appeals before the Commissioner of Central Excise (Appeals). The appeals were allowed by following the decision of a larger Bench of the Tribunal in Jyoti Overseas Limited v. CCE, Indore2, which overruled the decision in Simplex (supra) and held that cotton fabrics which were not ‘made up’ were correctly classifiable under Chapter 52 and not TH 59.09 (subsequently numbered as 5911.09). The Tribunal dismissed the appellant’s appeal on the same ground.
4. The decision in Jyoti Overseas Limited (supra) has been approved by this Court in our judgment dated 1st March, 2005 in C.A. Nos. 2816-2818/2002, Commissioner of Central Excise, Nagpur v. M/s. Simplex Mills Co. Ltd. We therefore hold that the goods manufactured by the respondent were classifiable under Chapter 52 and not under Chapter 5911.90 as contended by the Revenue. The appeals are accordingly dismissed.
1. During the years 1995-96, 1996-97 and 1997-98, the respondent Textile Mills cleared grey cotton canvas clothes and grey cotton fabrics, without payment of any central excise duty on the ground that the products were classifiable under Chapter 52 of the Central Excise and Tariff Act, 1985 under which the rate of excise duty was nil at the relevant point of time. According to the Revenue Authorities the goods were classifiable under sub-heading 5911.90 of the Tariff and liable for central excise duty at the rates specified on the Tariff. A show cause notice was issued on 27th December, 2000 as to why central excise duty should not be recovered and why penal action should not be taken against the respondent. In the meanwhile the respondent- Textile Mills were closed down in September, 1997 and M/s. Moti Lal Traders started functioning from the same premises with the same machinery.
2. The Additional Commissioner of Central Excise relying on the case of M/s. Simplex Mills Co. Ltd. v. CCE Nagpur1: confirmed the demand of duty and also imposed personal penalty on the respondent and ordered interest on the delayed payment. Duty was also demanded from M/s. Moti Lal Traders and personal penalty as well as interest was levied.
3. The respondent and M/s. Moti Lal Traders both preferred appeals before the Commissioner of Central Excise (Appeals). The appeals were allowed by following the decision of a larger Bench of the Tribunal in Jyoti Overseas Limited v. CCE, Indore2, which overruled the decision in Simplex (supra) and held that cotton fabrics which were not ‘made up’ were correctly classifiable under Chapter 52 and not TH 59.09 (subsequently numbered as 5911.09). The Tribunal dismissed the appellant’s appeal on the same ground.
4. The decision in Jyoti Overseas Limited (supra) has been approved by this Court in our judgment dated 1st March, 2005 in C.A. Nos. 2816-2818/2002, Commissioner of Central Excise, Nagpur v. M/s. Simplex Mills Co. Ltd. We therefore hold that the goods manufactured by the respondent were classifiable under Chapter 52 and not under Chapter 5911.90 as contended by the Revenue. The appeals are accordingly dismissed.
