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2018 (10) TMI 1247 - AT - Central Excise100% EOU - clearance of goods into the ‘domestic tariff area’ if manufactured out of exclusively indigenous raw material - Benefit of N/N. 8/97-CE - case of Revenue is that there is neither physical nor accounting mechanism to facilitate segregation of imported and indigenously procured cotton and also that the assessee had been mixing wastes/rejects with prime cotton without discriminating between those arising from use of imported and indigenous raw material. Held that:- The order now impugned before us is dealt with the dispute that had been brought up before us on an earlier occasion as also the demand of duty for a subsequent period that was not covered by our remand order - The remand by the Tribunal was specific in directing the original authority to consider the contents of the balance-sheet adduced by the appellant for the first time ever. It was mandated on the part of the original authority to delve into the conclusions that could be drawn from the balance sheet referred to; any other interpretation of the contents of the order would be non-contextual. It would appear that the audited balance sheet, evidencing specific quantities and values of imported and indigenously procured cotton would imply the existence of records that facilitated such segregation for statutory audit. The direction of the Tribunal was intended to that end. The original authority has failed to do so and, thereby, vitiated the impugned order. In the impugned order, the original authority has drawn upon an additional ground of waste of unidentifiable provenance having been mixed with prime cotton to conclude that the strict segregation mandated in the exemption notification supra has been contravened - On that issue, the decision of the Hon’ble Supreme Court in re Favourite Industries [2012 (4) TMI 65 - SUPREME COURT OF INDIA] has, in upholding the decision of the Tribunal, cleared the ambiguity holding that There cannot be any addition or subtraction from the notification for the reason the exemption notification requires to be strictly construed by the Courts. The wordings of the exemption notification have to be given its natural meaning, when the wordings are simple, clear and unambiguous. Matter remanded back to the original authority to decide the matter afresh after considering the availability of records that segregate imported from indigenously procured cotton and in the light of the decision of the Hon’ble Supreme Court - appeal allowed by way of remand.
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