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2015 (11) TMI 1029 - AT - Central ExciseDuty demand - removal of semi-finished goods under Rule 16B to the Job worker - Held that:- Rule 16B empowers the Commissioner, Customs, to permit a manufacturer to remove the excisable goods which are in the nature of semi-finished goods, for carrying out certain manufacturing process, to some other premises and to bring back such goods to his factory, without payment of duty. Admittedly in the present case, the Commissioner has granted the permission to remove the yarn. As such, I find that the conditions of Rule 16B stands fully satisfied. Otherwise also, I find that the appellants received fibre which are converted into yarn and such yarn is cleared for further conversion into fabrics by the job worker. As such, it is the said fabrics which have to be considered as the final product and the yarn is entitled to be considered as semi-finished goods which are further used in the manufacture of fabric. As such, I am of the view that Rule 16B fully applies to the facts of the present case. The said issue also stands decided by the Tribunal in the case of Valentino Syntex Pvt. Ltd. v. CCE, Jaipur [2008 (2) TMI 806 - CESTAT, NEW DELHI]. In the said decision, the yarn received by the manufacturer was converted into grey fabrics in their factory and was subsequently cleared to the job work for further processing. The Tribunal has held that the movement of grey fabrics to the job worker and return of man-made fabric to the appellant were in accordance with the erstwhile Rule 16B of Central Excise Rules, 2002. As such, the issue stands decided. Otherwise also, if the appellants are made liable to pay the duty on the yarn so cleared to the job worker, they are entitled to Cenvat credit of the duty so paid, which can be utilised by them for payment of duty on the fabrics, so received by them from the job worker. As such, the entire situation is revenue neutral. On the basis of the above discussions, I set aside the impugned order - Decided in favour of assessee.
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