Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (1) TMI 200

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed to remove processed yarn without payment of duty to its own factory at Cuddalore during the period of dispute in terms of Rule 13 of the Central Excise Rules 2001 read with Notification No.47/2004 dated 22.09.2004. Accordingly all the three assesse’s appeals are allowed. - E/638/2003, E/313/2004 & E/1388/2004 - FINAL ORDER No. 41769- 41771/2015 - Dated:- 30-10-2015 - Shri R. Periasami, Technical Member And Shri P.K. Choudhary, Judicial Member For the Petitioner : Shri Raghavan Ramabhadran, Adv. For the Respondent : Shri L. Paneer Selvam, AC (AR) ORDER Per: P.K. Choudhary This is the second round of litigation. Vide Tribunal s Final Order No. 198 to 201/2007 dated 12.02.2007, all the three assesses appeals were .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n No. 47/94-CE NT dated 22.09.1994 and under Rule 19 read with Notification No. 43/2001-CE-NT dated 26.6.2001. Rule 13 of the Central Excise Rules, 1944 and Rule 19 of the Central Excise Rules 2001 are pari materia. The notification issued under the said rules enabled Kovilpatti factory to send the yarn or fabric to the job worker and return for export. It is settled legal position that apart from third parties, one s own unit located outside can also be a job worker. 3. The issue before us is on a very narrow compass since the matter has already been extensively dealt with by both the Tribunal and the Hon ble High Court of Madras in its order dated 11.6.2015 and have accepted the assessee s contention. The Hon ble High Court had uphel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e, for further processing of bleaching/dying and got back the processed fabrics without payment of Central Excise duty for garment manufacturing and export from your Mills. In this connection the Assistant Commissioner of Central Excise, Kovilpatti Division has instructed you to follow the procedure laid down under Rule No.19 of the Central excise (No.2) Rules, 2001 read with NotificaitonNo.43/2001dated 26.6.2001. 6. Though such a letter forms part of the order of the Tribunal, there appears to be no offense taken by the Department in the present appeal so far as it relates to the said issue. However, the only plea that is taken is that no permission was sought for and granted to the assessee so far as yarn is concerned. This is despi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as above. The Tribunal shall go into the above question of fact and law in deciding the appeals. In the circumstances of the case, there shall be no order as to costs . 4. We find that the department filed three CMAs (2199/2008, 2200/2008 and 2201/2008) before the Hon ble High Court of Madras. The CMAs were not on the substantive issue as to whether Rule 19 enabled processing only on the goods procured (purchased) from outside or it included one s own manufactured goods. Rather, the CMAs were on the ground that the Kovilpatti factory did not obtain permission from the department for sending yarn without payment of duty from Kovilpatti to Cuddalore. The CMAs pleaded that the Tribunal s order covered only the permission for fabric and no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to the job workers is in place during the impugned period. 7. We find that the old Central Excise Rules, 1944 were replaced by the Central Excise Rules, 2001 with effect from 01.07.2001. At that time, the assessee by its letter dated 05.10.2001 addressed to the Assistant Commissioner of Central Excise, Kovilpatti stated that the Assistant Commissioner had, by letter dated 29.03.2001, permitted to clear yarn (Chapter 52 and 55) for further processing and export under Rule 13 of the Central Excise Rules, 1944, since the same permissions are available under new Rule 19 mutatis mutandis and also whatever permissions/orders issued under Central Excise Rules 1944 are deemed to be valid for new rules as per Rule 32 and they are continuing the c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates