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2012 (11) TMI 644 - AT - Central ExciseCaptive consumption of yarn and base fabric - exemption - Notification No. 14/2002 dated 1.3.2002 v/s Notification No. 22/96-CE dated 23.7.1996. - grey processed fabric - Held that:- Captive consumption has been exempted under Notification no. 22/96-C.E., dated 23-7-1996 and hence the appropriate duty required to be paid under the aforesaid condition read with the relevant notification is NIL and hence the condition relating to payment of appropriate duty has been satisfied. Also C.B.E. & C. Circular no. 680/71/2002-CX, dated 10-12-2002 which clarifies that the exemption under Notification no. 14/2002-C.E. is applicable to the composite Textile Mills even though they are exempted from payment of duty under Notification No. 22/96-C.E. in respect of captively consumed yarn and base fabric. The circular clarifies that textile fibres, raw material for composite mills, are brought from the market and hence have to be deemed to be duty paid in view of the Explanations to the said Notification no. 14/2002. Issue is already settled by the Tribunal in the case of Simplex Mills Co. Ltd. Vs. Commissioner of Central Excise, Mumbai [2005 (4) TMI 406 - CESTAT, MUMBAI] in favour of assessee.
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