TMI Blog2016 (7) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... was held that the grey fabric manufactured by the assessee out of duty paid yarn and cleared to the job worker for further processing and subsequently received and cleared on payment of duty are required to be extended the benefit of Rule 16(B) of Central Excise Rules by considering the same as intermediate goods. Also as the permission granted by the Commissioner in terms of Rule 16 (B) on 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te For the Respondent : Shri Govind Dixit, AR ORDER PER ARCHANA WADHWA: The appellant is engaged in the manufacture of yarn out of duty paid fibres on which they have taken the credit. Such yarn manufactured by them is cleared further to other job workers in terms of provisions of Rule 16(B) after taking proper permission from their jurisdictional Commissioner. The gray fabrics ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority observed that grant of permission under Rule 16(B) by the Commissioner was incorrect and the appellant were required to clear grey fabrics on payment of duty. Accordingly, the demand to the extent of ₹ 1,49,54,124/- stand confirmed along with confirmation of interest and imposition of penalty. 4. The order passed by the original adjudicating authority was further confirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same as intermediate goods. The said decision stands subsequently followed by the Tribunal in the case of Sangam Spinners Vs. CCE Jaipur [2015 (317) ELT 303 (Tri-Del)]. As such, we find that the disputed issue has been fully covered by the above referred decisions. Accordingly, we allow the appeal of the assessee. 6. Apart from the above, learned advocate has also taken a plea that inasmuch a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further payment of duty on the grey fabrics. The duty paid by the job worker was available as credit to the appellant who was in a position to utilise the same for payment of duty on the final product. Inasmuch as the appellant has admittedly paid the duty on the grey fabrics which have come back to them from the job worker, we fully agree with the learned advocate that entire exercise was only a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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