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M/s Loyal Super Fabrics Versus CCE, Pondicherry

2016 (1) TMI 200 - CESTAT CHENNAI

Clearance of yarn without payment of duty to job workers - permission was granted during the relevant period - Held that:- apart from third parties, one’s own unit located outside can also be a job worker. - the letter was duly acknowledged by the Superintendent of Central Excise, Kovilpatti Division dated 05.10.2011 and the department never disputed its grant of permission The permission dated 29.03.2001 and the appellant’s letter dated 05.10.2011 were placed before this Tribunal. Thus, the con .....

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ri 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 allowed and the Revenue s appeal was dismissed. Aggrieved by this order, the Revenue preferred appeal before the Hon'ble High Court of Madras in C.M .....

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s one of the Units. b) On getting due permission from the department, the Kovilpaatti factory sent yarn and fabric to the Cuddalore Factory without payment of duty for processing viz dyeing, scouring, stentering etc. After processing the yarn and fabric, the Cuddalore factory returned the same to Kovilpatti Factory. c) The factory at Kovilpatti converted the yearn into fabric (weaving) and then fabric into garments (through third parties) and exported under Bond. The products not exported were s .....

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l 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 a .....

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f the considered opinion that the matter requires to be remanded on a short question of fact and there is no need for this Court to give a finding on the above question of law. As is evident from the order of the Tribunal, on the basis of the pleading of the respondent, which has taken a plea before the Tribunal that on the strength of the permission ranted to Unit-II by the Jurisdictional Assistant Commissioner, which was communicated to Loyal Textile Mills Ltd, vide letter dated 30.10.01 by th .....

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l Excise duty to Loyal Super Fabrics Ltd., Cuddalore, 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 p .....

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has been placed before this Court, which has also been recorded by the Tribunal in its order. Though, the said letter was before the Tribunal and forms part of its order, however, this question of fact, which is disputed by the Revenue, has not been addressed by the Tribunal. Once a finding is recorded by the Tribunal on facts, it is supposed to address each and every issue that is placed before it by the parties on such fact. As to the Excise to the assessee granting permission has to be neces .....

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ered in the light of the earlier decision of the Tribunal in the case of Modern Mills Ltd., - VS Collector (1996 (82) ELT 90) on which reliance has been placed by the Tribunal. 8. In such view of the matter, these appeals are disposed of remanding the matter to the Tribunal, in terms 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 CMA .....

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e permission for fabric and no finding given as to the permission for yarn. 5. Before the High Court, the assessee submitted that necessary permissions were obtained for yarn also and the same were placed before the Tribunal at the time of argument. The Honble High Court thought it fit to remand the matter to the Tribunal for a finding of the fact as to the existence of permission for removal of yarn without payment of duty. 6. The assessee submitted that there is no dispute as to the existence .....

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ding Please refer to your letter Ref.No.Ex-3/Loyal-K/SL dated 20.03.2001. Permission for clearance of yarn without payment of duty to the job workers has been granted by the Assistant Commissioner of Central Excise, Kovilpatti under Rule 13 read with Notification 47/94 dated22.09.94. You are hereby requested to strictly comply with all the conditions and instructions contained in the said Rule. Thus, the assessee submits that the explicit permission for clearance of yarn without payment of duty .....

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