S.Vimala, J.

These Civil Miscellaneous Appeals have been filed, one filed by the Director and another by the company, as against the orders passed by the Customs, Excise and Service Tax Appellate Tribunal, (CESTAT) Chennai, in Final Order Nos.40318 and 40319 of 2014, dated 09.04.2014.

Brief facts:-

2. The appellants were engaged in the manufacture of mercerized cotton yarn during the period from 01.04.2003 to 01.11.2003. Except during this period, i.e., neither before nor thereafter, the mercerized cotton yarn remained exempted from the payment of duty. The appellants procured duty paid grey yarn, mercerized the same and cleared the product without payment of duty during the said period.

2.1. The original authority issued a show cause notice, dated 22.09.2004, as to why an amount of Rs.1,22,300/-being the duty on Mercerized yarn should not be demanded along with penalty and interest. The appellants sent a reply, dated 19.10.2004 and filed a written submissions, dated 21.12.2004, contending that the show cause notice was time barred; that there was no intention on the part of the assessee to evade payment of duty; with the introduction of Excise duty on textiles, in Budget 2