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TMI Blog2005 (9) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of personal hearing. (b) Notification No. 6/2002-C.E. (N.T.), dated 1-3-2002 allows deemed credit to textile unit, on the specified inputs and final products, inputs and final products were specified in the said notification. The department has not disputed that deemed credit taken on the inputs for manufacturing final products were not specified inputs and final products. There is no dispute about the amount of deemed credit availed by the assessee. (c) The Adjudicating authority disallowed deemed Cenvat credit on the grounds that the deemed Cenvat credit availed by the Assessee on gray fabrics received from Hastak Shilpa Vikas Nigam Ind. Who is an institute governed by National H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity. It reads, "it is clarified that even if the declared inputs are used directly by a manufacturer of final products the credit of the declared duty shall, notwithstanding the actual amount of duty paid on such declared inputs, be deemed to be equivalent to the amount specified in this notification and the credit of the declared duty shall be allowed to such manufacturer". Thus, it is not proper to go beyond the scope of basic notification for denying benefit of the notification, extended by the legislature." On the grounds - (i) The Budget Bulletin 2001 for Central Excise in Explanatory notes - Central Excise in respect of textiles in para 3 of page XXXII provided as "While in respect of fabrics woven and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is not proper, legal and correct. Further, it is fact that the Notification No. 6/2002, Central Excise (N.T.), dated 1-3-2002 does not stipulate that the cotton fabrics on which deemed credit is to be taken must be manufactured from the duty paid yarn. But Explanation 1 appended with the said notification clearly stipulates that even if the declared inputs are used directly by a manufacturer of final products the credit of the declared duty shall, notwithstanding the actual amount of the duty paid on such declared inputs, be deemed to be equivalent to the amount specified in this notification and the credit of the declared duty shall be allowed to such manufacturer. Thus it reveals that the duty paid nature of declared inputs is must ir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer. A plain strict reading of this Explanation would imply that deemed credit at the rates specified in the notification shall only be eligible and the actual duty discharged on the inputs would not be reckoned to be relevant or and applicable. This would imply a reduced rate of deemed credit when actuals are more is readily admitted by the ld. Jt. CDR, then why it should not be equivalent to deemed rate prescribed, when actuals are less even tendering to or itself be zero. No answers are found in the appeal or tendered. The interpretation placed by Revenue on the Explanation cannot be upheld. The Explanation helps the assessees case by prescribing ignoring of the actual rate paid by input manufacturer. (c) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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