w w w . L a w y e r S e r v i c e s . i n



Commissioner of Central Excise, Coimbatore v/s Best Cotton Mills Ltd.


Company & Directors' Information:- P A S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111TN2005PTC058104

Company & Directors' Information:- BEST CORPORATION PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011016

Company & Directors' Information:- V R A COTTON MILLS PRIVATE LIMITED [Active] CIN = U15311PB1997PTC020061

Company & Directors' Information:- C A V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1987PTC002014

Company & Directors' Information:- BEST COTTON MILLS PRIVATE LIMITED [Active] CIN = U17120TZ2015PTC021591

Company & Directors' Information:- V K S M COTTON MILLS LIMITED [Active] CIN = U17111TZ1998PLC008682

Company & Directors' Information:- BEST CORPORATION LIMITED [Amalgamated] CIN = U17111TZ2006PLC013164

Company & Directors' Information:- BEST COTTON MILLS PRIVATE LIMITED [Amalgamated] CIN = U17115TZ1989PTC002417

Company & Directors' Information:- P K COTTON MILLS PRIVATE LIMITED [Active] CIN = U17111DL2004PTC130281

Company & Directors' Information:- C R MILLS COIMBATORE PRIVATE LIMITED [Active] CIN = U17111TZ2002PTC010317

Company & Directors' Information:- CENTRAL COTTON MILLS LTD [Strike Off] CIN = U17118WB1956PLC022864

Company & Directors' Information:- K P G COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1993PTC004509

Company & Directors' Information:- D B V COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115TZ1982PTC001145

Company & Directors' Information:- S S COTTON MILLS PRIVATE LIMITED [Active] CIN = U17115PB1997PTC019918

Company & Directors' Information:- J R COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TN1996PTC034302

Company & Directors' Information:- D C H COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1997PTC008130

Company & Directors' Information:- L D COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17291MH2014PTC256832

Company & Directors' Information:- A D COTTON MILLS PVT LTD [Active] CIN = U99999MH1970PTC014837

Company & Directors' Information:- COIMBATORE COTTON MILLS LIMITED [Active] CIN = U17111TN2002PLC049547

Company & Directors' Information:- BEST INDIA PRIVATE LIMITED [Active] CIN = U28113DL2015PTC281197

Company & Directors' Information:- V P K COTTON MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ2000PTC009530

    Appeal No. E/205 of 2002

    Decided On, 21 May 2009

    At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai

    By, HONBLE MS.JYOTI BALASUNDARAM
    By, VICE-PRESIDENT & HONBLE MR. P.KARTHIKEYAN
    By, MEMBER (TECHNICAL)

    For the Appearing Parties: R.P. Meena, SDR, S. Venkatachalam, Advocate.



Judgment Text

Jyoti Balasundaram


The respondents herein, who are engaged in the manufacture of cotton yarn, cleared their entire production during the period October 1996 to June 2000 on stock transfer basis to depot at Tiruppur and to their consignment agents for sales and for other disposal. The final sale of yarn was effected from the depot at Tiruppur. Cotton yarn was consumed for the manufacture of hosiery fabrics on their own account besides effecting sales to other customers. While effecting clearances to job workers, the respondents had not adopted the same value for the same kind of yarn and adopted much lesser value when compared to the value adopted for the sales made from depot to other customers. Hence a show-cause notice dated. 15.3.01 was issued proposing recovery of differential duty of Rs.13,88,269/- together with interest, under the proviso to Section 11A (1) of the Central Excise Act, and proposing imposition of penalty under Section 11AC read with relevant Rules. The notice was adjudicated by the Additional Commissioner who upheld the demand together with interest and also imposed penalty of equal amount. The Commissioner (Appeals) accepted the contention of the assesses that the demand for the period October 1996 to 16.3.2000 was barred by limitation and restricted the demand for the period from 17.3.2000 to 30.6.2000 which worked out to Rs.2,45,563/- and he also reduced the penalty to Rs.50,000/-. Hence this appeal by the Revenue.


2. We have heard both sides. It is the case of the department that assesses were guilty of suppression as they had not filed any declaration as required under the second proviso to Rule 173C of Central Excise Rules, 1944. However, we find that the assesses had filed declaration in terms of sub-rule (3A) of Rule 173C regarding their market pattern. They had also filed worksheets showing item wise details of dispatch, value, forwarding charges and differential duty along with RT-12 Returns filed every month. In the worksheet, they had indicated quantity sent for conversion and the rate adopted. Thus it is clear that the department was aware that assesses were sending cotton yarn to job worker for conversion and selling hosiery fabrics at a particular value. Hence all the relevant information was available with the department. If the department was of the view that the value adopted by the assesses for clearances to job worker was much lesser than the value adopted for sales made from depot to other customers, show-cause notice alleging undervaluation and proposing to recover differential duty should have been issued within the norm

Please Login To View The Full Judgment!

al period of limitation. We, therefore, agree with the finding in the impugned order that the extended period of limitation is not available to the department and that the demand for the period prior to 17.3.2000 is time barred. We, accordingly, uphold the impugned order and reject the appeal.
O R