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TMI Blog2015 (2) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... and viscose staple fibre free of duty under Rule 19 (2) of the Central Excise Rules 2002 read with Notification No. 43/2001-CE NT dated 21st June, 2001 for use in the manufacture of the yarn for export. The appellant due to some reasons, could not use full quantity procured duty free for the intended purpose that is for manufacture of the spun yarn for export and certain quantity of the spun yarn manufactured out of the duty free PSF & VSF was cleared to domestic buyers on payment of duty. The appellant in respect of PSF & BSF procured duty free which had been used for manufacture of spun yarn cleared to domestic buyers on payment of duty, paid central excise duty amounting to Rs. 19,88,054/- but through the cenvat credit and besides this, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er duty on this PSF & VSF could be paid through cenvat credit, That this issue stands decided in the appellants favour by the Tribunal judgment in the case of Ginger Clothing Pvt. Ltd. Vs. CCE, Thane reported in 2014 (299) ELT 469 (Tri.-Mumbai) wherein the Tribunal in similar circumstances held that the duty on the material procured free of duty for export production under Rule 19(2) of Central Excise Rules, 2002 could be paid through cenvat credit, that as regards the second point of dispute as to whether cenvat credit of duty paid on the PSF and VSF is admissible, this issue also stands decided in the appellants favour by the Tribunal judgment in the case of Shree Karpagambal Mills Ltd. Vs. CCE, Tirunelveli reported in 2007 (216) ELT 718 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se duty was not eligible for duty exemption and on this point there is no dispute. The only point of dispute is as to whether the excise duty on this quantity of PSF & VSF could be paid through cenvat credit and whether cenvat credit of the duty so paid would be admissible. 7. We find that on the first point as to whether the duty on above mentioned quantity of PSF & VSF procured duty free which could not be used for manufacture of the finished goods exported out of India, could be paid through Cenvat Credit is not stands decided by the Tribunal judgment in the case of Ginger Clothing Pvt. Ltd. Vs. CCE, Thane reported in 2014 (299) ELT 469 (Tri.-Mumbai) in favour of the appellant and similarly the second issue as to whether cenvat credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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