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2009 (5) TMI 216 - AT - Central ExciseAppellant is engaged in the manufacture of Dyed Polyester Yarn from non-duty paid exempted Poly Twisted Yarn - issue involved is their eligibility for exemption under Notification No. 6/2000-CE dated 1-3-2000 - Till the Hon’ble Supreme Court rendered their decision in Dhiren Chemical case, both Revenue as well as Trade were under the impression that where goods are exempted or attracted nil rate subject to the condition that the same are manufactured out of raw material on which appropriate duty has been paid, the appropriate duty could be nil rate of duty or fully exempted goods. Further, Supreme Court also observed in Dhiren Chemical case that the Revenue would be bound by beneficial circular issued by the Board - Board Circular No. 125/36/95-CX, dated 15-5-1995 was withdrawn vide circular No. 667/58/2002-CX, dated 26-9-2002, after the Hon’ble Supreme Court rendered their decision in the case of Dhiren Chemical Industries [2007 - TMI - 1709 - SUPREME COURT OF INDIA] - Further the cut off date for application of Hon’ble Supreme Court decision should be 26-9-2002 the date on which earlier circular was withdrawn and not the date 12-12-2001 on which SC rendered the decision – demand for the period subsequent to 26-9-2002, can be sustained Notification provided where Department takes action without invoking proviso to Section 11A.
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