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Premier Cotton Textiles V/S Commissioner of C. Ex., Coimbatore


Company & Directors' Information:- THE COTTON CORPORATION OF INDIA LIMITED [Active] CIN = U51490MH1970GOI014733

Company & Directors' Information:- J. K. COTTON LIMITED [Active] CIN = U17111UP1924PLC000275

Company & Directors' Information:- PREMIER LIMITED [Active] CIN = L34103PN1944PLC020842

Company & Directors' Information:- K P TEXTILES COIMBATORE PRIVATE LIMITED [Active] CIN = U17111TZ2000PTC009130

Company & Directors' Information:- P D COTTON PRIVATE LIMITED [Active] CIN = U52321GJ2007PTC051857

Company & Directors' Information:- R. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2010PTC061139

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Active] CIN = U17120MH1994PTC156054

Company & Directors' Information:- P. I. COTTON PRIVATE LIMITED [Active] CIN = U17120GJ2007PTC050747

Company & Directors' Information:- B V COTTON PRIVATE LIMITED [Active] CIN = U17111GJ2004PTC044704

Company & Directors' Information:- S K COTTON PRIVATE LIMITED [Active] CIN = U17110GJ2006PTC047511

Company & Directors' Information:- S R COTTON PRIVATE LIMITED [Active] CIN = U17120KA2013PTC071881

Company & Directors' Information:- S D S COTTON PVT LTD [Active] CIN = U17115PB1991PTC011007

Company & Directors' Information:- P A COTTON PVT LTD [Active] CIN = U74999WB1992PTC055525

Company & Directors' Information:- D D COTTON PRIVATE LIMITED [Not available for efiling] CIN = U17115PB1994PTC014981

Company & Directors' Information:- K S COTTON PRIVATE LIMITED [Active] CIN = U17299WB2003PTC096994

Company & Directors' Information:- B D COTTON PRIVATE LIMITED [Active] CIN = U51909GJ1978PTC003234

Company & Directors' Information:- G K COTTON PVT LTD [Active] CIN = U00309BR1982PTC001698

Company & Directors' Information:- R R COTTON PRIVATE LIMITED [Active] CIN = U17111DL1998PTC094459

Company & Directors' Information:- PREMIER INDIA PRIVATE LIMITED [Active] CIN = U52520TG1993PTC016684

Company & Directors' Information:- C R COTTON INDIA PRIVATE LIMITED [Active] CIN = U17299DL2006PTC145903

Company & Directors' Information:- PREMIER TEXTILES PRIVATE LIMITED [Strike Off] CIN = U17111TZ2008PTC014141

Company & Directors' Information:- PREMIER COTTON TEXTILES PRIVATE LIMITED [Active] CIN = U29252TZ1996PTC007017

Company & Directors' Information:- COTTON TEXTILES PRIVATE LIMITED [Dissolved] CIN = U99999TN1956PTC000396

    Final Order No. 40404/2017 in Appeal No. C/585/2006-DB

    Decided On, 03 March 2017

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

    By, THE HONORABLE JUSTICE: D.N. PANDA
    By, MEMBER AND THE HONORABLE JUSTICE: MADHU MOHAN DAMODHAR
    By, MEMBER

    For Petitioner: C. Saravanan, Advocate And For Respondents: S. Nagalingam, AC (AR)



Judgment Text


1. Appellant says that the raw material imported by it during the period October, 1999 to March, 2002 have undergone the process of manufacture. The resultant goods have been exported in fulfillment of the condition of Notification No. 53/97-Cus., dated 3-6-1997 and appropriate quantum of foreign exchange have been realized. There is no violation made to the Export Import Policy in this regard. The only difficulty arose for the department is that the percentage of the wastage occurred in the manufacturing process to the extent 25.93 for the period from October, 1999 to March, 2011 and 28.70% for the period from April, 2001 to March, 2002 was not acceptable to Revenue. But there was no SION (Standard Input Output Norm) prescribed by the policy which governed the appellant. Therefore, Circular No. 305/111/85-FTD, dated 29-12-1986 relied by Revenue to restrict the wastage to 25% is of no avail to the department to realize the duty alleged to have been forgone on the waste material. Appellant further says that whatever the waste has occurred that has also fetched excise duty to the department without any allegation of finding of clandestine removal. In such circumstances, appellant's prayer is to allow the appeal without any Customs duty being levied on the waste. Revenue says that the SION norm against wastage was 25% of the input. That being fixed by the Board in terms of the aforesaid circular, the quantum of waste generated should not exceed 25%. The excess quantum shall be liable to Customs duty which was in violation of Notification No. 53/97-Cus., dated 3-6-1997.

2. Heard both sides and perused the records.

3. Prima facie, it does not appeal to common sense as to how without SION fixed by the EXTM Policy which governed the appellant for the purpose of import and export and also the notification governing the appellant, as aforesaid, having no mention about any SION or percentage of wastage, appellant shall be arbitrarily dealt. Making further examination, it is noticed that the waste generated was not deliberate and the appellant has paid excise duty thereon when cleared. Department has not made any case to show that there was deliberate pilferage of the raw material by the appellant or diver

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ted the same. In absence of any mala fide being brought on to record, appellant cannot be suspected to have made any undue gain at the cost of the State. Therefore, arbitrary adjudication is not permissible. Accordingly, appeal is allowed.
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