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2016 (7) TMI 86 - AT - Central ExciseGrey fabric manufactured to the job worker - whether is required to be treated as intermediate products so as to invoke provision of Rule 16(B) - Held that:- In the case of M/s. Valentino Syntex Pvt. Ltd. Vs. CCE Jaipur [2008 (2) TMI 806 - CESTAT, NEW DELHI ] while considering an identical issue, it was held that the grey fabric manufactured by the assessee out of duty paid yarn and cleared to the job worker for further processing and subsequently received and cleared on payment of duty are required to be extended the benefit of Rule 16(B) of Central Excise Rules by considering the same as intermediate goods. Also as the permission granted by the Commissioner in terms of Rule 16 (B) on 17.12.04 has not been withdrawn by him and was still in existence, Revenue cannot take a stand against the said permission. The duty paid by the job worker was available as credit to the appellant who was in a position to utilise the same for payment of duty on the final product. Inasmuch as the appellant has admittedly paid the duty on the grey fabrics which have come back to them from the job worker, we fully agree with the learned advocate that entire exercise was only a paper exercise leading to a revenue neutral position.- Decided in favour of assessee
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