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2016 (7) TMI 549 - AT - Central ExciseCategorisation of grey fabrics - Job work - cenvat credit - duty demand - Held that:- The categorisation of grey fabric will need to be done with reference to the final products cleared from the hands of appellant-assessee. It is not in dispute that the ultimate products which has been exported by the appellant-assessee are processed fabrics and the appropriate duty has been paid at that stage by them. Keeping this in view, we have no hesitation in categorising the grey fabrics as input/ intermediate products. Rule 4(5)(a) of the Cenvat Credit Rules permits such goods to be sent to the job worker for further processing. Under the permission granted by the Commissioner under Rule 4(6), the processed fabric has been cleared directly for export from the premises of the job worker, by the appellant - assessee on payment of appropriate duty. Under the circumstances, we find that the view taken by the Commissioner to consider these goods as finished goods is totally erroneous and the demand of duty itself is without the sanction of law. We accordingly set - aside the order dated 28.09.2007 of the Commissioner. - Decided in favour of assessee.
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