Under Rule 56A of the Central Excise Rules as it then stood , the intermediate product companyld be cleared with nil rate of duty provided the final product, manufactured from such intermediate product, was number exempted from the whole of the duty of excise and the final product was number chargeable to nil rate of duty.
In the scheme of levy under tariff heading 5501.20, under which polyester staple fibre and tow figure, the duty envisaged was either at the tow stage or at the staple fibre stage.
This Appeal is against the judgment of the Customs, Excise Gold Control Appellate Tribunal in short CEGAT dated 26th September, 1996.
By this Notification Polyester Fibre which was intended for use under the programme mentioned in this Notification was exempted from payment of duty.
The Respondents cleared Tow without payment of duty by virtue of this Rule.
191/85, dated 28th August, 1985.
Briefly stated the facts are as follows The Respondents manufacture Polyester Fibre.
In the manufacture of Polyester Fibre, there is an intermediate product known as Tow.
Thereafter they also cleaned the final product, without payment of duty, on the basis of Notification No.
