TMI Blog2009 (5) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as duty paid - exemption to unprocessed knitted fabrics in Sl. No. 14 of this notification is not an unconditional exemption and is subject to condition that such unprocessed knitted fabrics had been made out of duty paid yarn and no Cenvat credit has been taken and in view of this any unprocessed fabric purchased from the market cannot be treated as unconditionally exempt from duty and hence non-duty paid - E/6143/2004 - 328/2009-EX(PB) - Dated:- 13-5-2009 - Justice R.M.S. Khandeparkar, President and Shri Rakesh Kumar, Member (T) REPRESENTED BY : Shri Amit Jain, SDR, for the Appellant. None, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. - This is an appeal by the Revenue against Order-in-Appeal No. 580-60 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period from 1-9-02 to 31-3-03 by availing the exemption under this Notification while the same was not available, as the processed knitted fabrics had not been made out of duty paid fabrics. The Assistant Commissioner vide Order-in-Original dated 11-02-04 confirmed the duty demand of Rs. 70,028/- alongwith interest and besides this, imposed penalty of equal amount under Rule 25(1) of Central Excise Rules, 2002. The Commissioner (Appeals) vide Impugned Order-in-Appeal dated 31-08-04 set aside the duty demand of Rs. 30,551/- on the ground that during the period of dispute, the processed fabrics valued at Rs. 7,63,785/- had been processed out of grey fabrics manufactured in their own factory from yarn stage, in respect of which as per the B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured out of the yarn purchased from the market and the remaining fabrics valued at Rs. 4,55,330/- had been manufactured out of the grey/unprocessed fabric purchased from the market and in respect of that fabric, the concessional rate of duty was not available. He also emphasised that the "unprocessed knitted fabrics, other than of cotton are fully exempt from duty vide Sl. No. 14 of the Notification No. 14/2002-CX dated 1-3-02 subject to condition that the same have been made out of duty paid yarn and no Cenvat Credit of duty paid on the inputs had been taken and that since the raw-material for the grey knitted fabrics i.e. the yarn purchased from the market is deemed to be duty paid, the grey unprocessed fabrics bought from the market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or fabric shall be deemed to have been duty paid even without production of the documents evidencing the payment of duty thereon. As per the Board's Circular No. 680/71/02-CX dated 10-12-02, by virtue of Explanation II, as amended by Explanation VII, under Notification No. 14/02-C.E., - textile fibre, yarn and fabrics bought from the market are deemed to be duty paid and thus a manufacturer engaged in processing of fabrics alongwith weaving or knitting or crocheting fabric within the same factory from textile fibre or yarn bought from the market would attract excise duty of 12% ad valorem. In this case there is no dispute about the availability of the concessional rate of duty under Notification No. 14/02-CX. (Sl. No. 16) to the processed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
