TMI Blog2016 (3) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... ondents are procuring their primary raw materials, tapes, without payment of any duty. As a result they would not be entitled to the benefit of Notification No.6/2002 as they would not have fulfilled the condition 34 specified in the said notification. Therefore, they would not have been eligible for availing of Notification No. 13/98 as, they failed to establish availability of notification 6/2006-CE. Furthermore the importer had fulfilled the condition of the notification in so much as he had not availed the credit under CENVAT. - Decided in favour of revenue - Appeal No. E/229/05 - A/86146/16/EB - Dated:- 2-3-2016 - SS GARG, MEMBER (JUDICIAL) AND RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri VK Agarwal, Addl. Comm. (AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions of Notification 13/98-CE are not fulfilled the benefit of the same has to be allowed. Aggrieved by the impugned order, the revenue is in appeal before us. 2. The learned AR argued that the respondents are not entitled to the benefit of Notification No. 13/98-CE dated 02/06/98 as the goods manufactured by them are clearly recognizable as the goods manufactured using fully exempted raw materials. The respondents were manufacturing ropes out of tapes procured duty free as the respondents were EOU. The revenue also relied on the decision of the Hon'ble Supreme Court in the case of Dhiren Chemical Industries - 2002 (139) ELT 3 and on the decision of the Larger Bench of this Tribunal in the case of Machine Builders - 1996 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such finished products, if manufactured and cleared by a unit other than a hundred per cent. export oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to Nil rate of duty; and b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997 - 31 March, 2002. There is no doubt regarding fulfill the condition (b). The respondent claimed that they are fulfilling condition (a) as the product manufactured by them is exempted from Central Excise duty vide notification 6/2006. It is se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable for the clearances into DTA has no relevance as because the said Notification No. 6/2002 nowhere mentions that the same is applicable for 100% EOU. In fact, for clearances from a 100% EOU into DTA, there can be no bar for a 100% EOU availing the said Notification No. 13/98-CE dated 2/6/98 provided the conditions therein are fulfilled. As department is not disputing the fulfillment of the conditions of the Notification No. 13/98-CE dated 2/6/98 by the appellants, the appellants cannot be barred from availing the benefit of the said Notification. Therefore, there is no merit in the stand of the department. Accordingly, the demand of ₹ 10,84,288/- and penalty of ₹ 4,00,000/- imposed under Rule 25 (1) are not sustainable . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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