9911796707
TMI Blog2007 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ,42,566/- relating to the period March, 2001 to May, 2001 and March, 2002 to March, 2003 on the ground that the grey fabrics falling under chapter heading 52 and 55 have not been specified as inputs in column-2 of the table to the Notification No. 7/2001-C.E. (c) Original Authority, namely the commissioner, dropped the proceedings initiated under the show cause notices. (d) Hence, the Department is in appeal. 4. Ld. SDR submits the following : (i) That the grey fabrics are not specified inputs under Notification No. 7/2001 and that the deemed credit under the said notification was subject to the condition that the inputs specified therein were used for the manufacture of final products. In the instant case, the input used by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goods falling within heading No. The following goods manufactured by a composite mill, namely - 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, (i) Processed fabrics falling under Chapters 52 (except sub-heading Nos. 5207.20, 5208.20 and 5209.10), 54 (except sub-heading Nos. 5406.10 and 5407.19 ) or 55 (except sub-heading Nos. 5511.10, 5512.10, 5513.10 and 5514.10); or 54.04, 54.05, 55.01, 55.02, 55.03, 55. 04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04, 56.05 or 56.06 of the First Schedule. (ii) Fabrics of cotton or man-made fibres, whether or not processed, falling under heading Nos. 58.01, 58.02, 58.06 (except sub-heading No. 5806.20), 60.01, 60.02 (except sub-heading No. 6002. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.1 It is to be noted that normally Cenvat credit is available on the inputs used in the manufacture of final products and the credit available is the actual duty paid on the inputs so used in the manufacture of the final products. 8.2 The concept of and procedure relating to deemed credit is on a different footing. The Central Government in exercise of powers conferred under Rule 57 of Central Excise Rules, 1944 prescribed the procedure for what is being referred to as deemed credit in respect of duty attributable to "declared inputs". It is not as if each and every goods mentioned as inputs in the said notification is required for every finished products mentioned as final product mentioned therein. The notification fixes the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which is used as input for grey fabrics has also been declared as inputs for processed fabrics. In other words, the yam is an input to grey fabrics, 1 which is an input to the processed fabrics and hence has to be treated as input for the processed fabrics. Otherwise the notification will become redundant and unworkable in the above situation. 9. In the light of the above, the interpretation given by the Commissioner appears reasonable and legal. 10. Apparently some of the decisions as in the case of Crystal Cable Industrial Ltd. reported at 2003 (159) E.L.T. 465 (T) referred by the Commissioner are not relevant to the facts of the present case. However, we have not been shown that other decisions relied upon by him are not relevant or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
