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2015 (4) TMI 695 - HC - Central ExciseDeemed credit - textile fabrics - Whether the Tribunal was right in giving benefit of deemed credit of 50% in terms of Notification Nos. 28 of 2000 dated 1st March, 2000, 7 of 2001 dated 1st March, 2001 and 28 of 2001 dated 11th June, 2001 to the Assessee - option to pay duty under Compounded Levy Scheme - Held that:- the show cause notice demanded differential duty - In the meanwhile, even the present Respondent continued to pay duty under the Advalorem Scheme. It paid that duty to the extent of 50% and which was accepted. If the stand of the Revenue was that it was not entitled to be considered as a new unit or was disentitled for any benefit and particularly under the Advalorem Duty Scheme, then, it is inexplicable as to why the Commissioner permitted them to pay duty under the said scheme, namely the Advalorem Scheme. It is that fact which has weighed with the Tribunal and that is how it has held the Assessee to be entitled to the benefit. If the application made on 12th September, 2001 for availing the option to pay duty under the Compounded Levy Scheme was rejected and as complained by the Respondent/ Assessee , without any hearing, which fact was complained to the Tribunal, then, all the more we do not find that the Tribunal was prevented while adjudicating and considering the legality and validity of the show cause notice and the order-in-original . The show cause notice was issued, but in the teeth of the fact that the Assessee /Respondent was entitled to avail of the benefit of the Advalorem Scheme. Despite issuance of such show cause cum demand notice, if the Assessee paid duty under the scheme, then, that fact has rightly weighed with the Tribunal. - Decided against Revenue.
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