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2014 (3) TMI 376 - CESTAT NEW DELHIDenial of exempted from payment of duty in terms of Notification No. 30/2004-C.E. - Appellant were manufacturing both dutiable as well as exempted final products, they were availing credit of duty paid on the inputs, used in both types of their final products - However, at the time of clearance of exempted yarn, they were reversing 5% of the amount in terms of the provisions of Rule 6(3)(b) of Cenvat Credit Rules - Held that:- ‘NEY 210 denier’ attracts the tariff rate of duty at 8% of the value of the same. Even if we are prima facie agree with the Revenue’s stand that the benefit of Notification No. 30/2004 is not available to them, we note that there was an alternative Notification No. 29/2004-C.E. The said notification provides concessional rate of duty of 4%, subject to availment of credit. As such, even if it is held that the appellant has availed credit of duty paid on the inputs, the effective rate of duty would be 4%, in terms of Notification No. 29/2004. Admittedly, the appellant at the time of clearance of their goods had paid back 5% of the credit availed by them, which is admittedly more than the effective rate of duty - Notification No. 29/2004 would prima facie cover the disputed issue but we find that the applicability of the said notification was not examined by the adjudicating authority as the appellant did not place reliance on the same - Matter remanded back - Decided in favour of assessee.
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