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2009 (6) TMI 274 - CESTAT AHMEDABADThe appellants were manufacturing Polyester Texturised Yarn (PTY) by utilizing the raw materials supplied on job work basis and for this purpose, they were availing benefit of Cenvat Credit under Cenvat Credit Rules, 2002/2004 (hereinafter referred to as CCR). In the impugned order, it has been held that Notification No. 214/86-C.E., dated 25-3-1986 had excluded the filament yarn from the purview of the said Notification. - There is no dispute that the raw materials were sent under challan and finished products were returned to the principal. There is also no dispute that the principal had paid duty on the finished product. In these circumstances, the requirement of provisions of Rule 4(5)(a) of CCR have not been fulfilled - Tribunal in case of CCE, Vapi v. Sunflag Filaments Ltd. clearly observed that in the absence of amendment of Rule 4(5)(a) of CCR, which excluded PTY from following the procedure, the assessee cannot be prevented from availing this facility and, therefore, the clearance cannot be held as irregular. – Hence no duty payable, confiscation and penalty set aside
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