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2018 (8) TMI 84 - CESTAT ALLAHABADSupply of Yarn to Handloom Societies - N/N. 5/98-CE and 5/99-CE - whether the yarn so supplied by the appellant was actually used by the societies or not? - Held that:- As per Notification, such yarn was required to be supplied by the assessee on the orders of the National Handloom Corporation subject to production of certificate and the fact that the payment for the same stands made by cheque drawn by such Cooperative Society or Corporation, as the case may be, on its own bank account - Admittedly, both the conditions stand satisfied by the appellant, inasmuch as certificate stands produced and the consideration stands received by way of cheque. There is no further obligation cast upon the assessee to find out the truth, as to whether the yarn supplied by them to various societies, under the direction of the Apex body i.e. NHDC stands actually used by such societies on handloom. An identical issue was considered by the Tribunal in the case of M/s West Dinajpur Spinning Mills Ltd. Vs Commissioner of Central Excise, Kolkata [2006 (7) TMI 390 - CESTAT, KOLKATA] wherein it was observed that there being no further condition as regards the disposal of purchased yarn by the Apex body, revenue’s anxiety to reach the purchaser of the Apex body and the ultimate use of the yarn is beyond the scope of the notification. The yarn having been purchased by Apex body NHDC, it was their duty to see the fair distribution of the same to the handloom sector. No end use condition can be self introduced in the notification. In the absence of such requirement built in the notification inasmuch the certificate for intended use were issued, and further use of the same being in the hands of the Apex body, who are held responsible for distribution, the fact of actual use of the yarn will not effect the appellant’s claim to the benefit of the notification. Such an extraneous condition cannot be imposed by the adjudicating authority on its own. Appeal allowed - decided in favor of appellant.
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