Ashoke Kumar Dasadhikari, J. - (1.) The subject matter of challenge in this writ petition is the impugned show cause notices dated September 5, 1994, January 30, 1995, April 3, 1995, June 26,1995, September 18,1995, April 3,1997 and March 28, 1996 and the order impugned passed by the Joint Commissioner, Central Excise, Haldia on 30th November, 2005 and also the impugned order of Appellate Authority dated 25th May, 2008.
(2.) Mr. Khaitan, learned senior counsel appearing for the writ petitioner submits that the present petitioner is managing the mill pursuant to an agreement dated 31st August, 2005. He submits that M/s. Premchand Jute Mill Ltd. is actual owner of the jute mill known as Premchand Jute Mill situate at Chengail, Howrah for manufacturing of jute yarn, fabrics, sacks, bags and various jute products. The said mill was run from time to time on conversion basis by different companies at different point of time.
(3.) It was submitted by Mr. Khaitan that during the period of March 1994 to February 1997 the said mill running on conversion basis by some other companies, had a stitching unit for manufacture of sacks and bags of jute out of duty paid woven fabrics of jute and jute yarn and the same unit is adjacent to their main factory premises. The practice generally followed was that they removed duty paid jute woven fabrics and jute yarn to their stitching unit for manufacture of sacks, and bags of jute and after manufacturing they removed the without payment of central excise duty as per Notification No.65/87-CE dated March 1, 1987 which was valid till February 28,1994. After deletion of the said Notification with effect from March 1,1994 Rule 56A procedure of the Central Excise Rules, 1994 was extended to the jute products under Notification No. 7/94-CE dated March 1, 1994 and after deletion of the same with effect from May 20, 1994, Notification N.'121/94-CE dated August 11, 1994 was issued extending the benefit of duty exemption for captive consumption of jute inputs in the manufacture of finished goods.;