F.M.IBRAHIM KALIFULLA, J. - (1.)The Commissioner of Central Excise, Chennai, is the appellant. The challenge is to the order of the second respondent/Tribunal dated 18.6.2007, passed in Appeal No.E.1184/2004.
(2.)The brief facts are that M/s.Apollo Tyres, Trichur, who are engaged in the manufacture of tyre and its exports, applied for permission with the Assistant Collector of Central Excise, Trichur, for procurement of 250 metric tonnes of Nylon Yarn under Rule 191-BB from the first respondent herein. The order however, stated that tyre manufacturer should follow the terms and conditions laid down under Notification 33/90-CE (NT) dated 5.9.1990. A separate certificate was issued along with the order dated 7.10.1991. It was further reinforced that the applicant M/s.Apollo Tyres, Perambra, under the permission granted can get the Nylon Yarn processed into fabrics at the premises of the first respondent herein, on job work basis on fulfilment of the following conditions:-
"(1) The quantity of yarn and fabrics released as per this permission shall be intimated to this office. (2) Separate account shall be maintained by M/s.SRF Ltd. Madras right from yarn stage until the clearance of fabrics. (3) Procedure prescribed under Notification No.33/90-CE (NT) shall be followed strictly. (4) Waste/bye-products, if any, generated in the process shall also be transmitted to the applicant along with the finished fabrics."

(3.)It is not in dispute that between 15.11.1991 and 29.11.1991, 250 metric tonnes of yarn procured from the first respondent were processed into tyre cord fabrics and the entire quantity was forwarded to M/s.Apollo Tyres Ltd., Perambra, without payment of duty based on the permission granted by the Assistant Collector, Trichur, dated 7.10.1991. Subsequently, on 6.1.1992 the Assistant Collector of Central Excise, Trichur, passed an order to the effect that the permission granted by the said office in the letter dated 7.10.1991 is withdrawn with immediate effect and that the manufacturer should apply to the Collector of Central Excise, Trichur.