TMI Blog2016 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... rther processing. Under the permission granted by the Commissioner under Rule 4(6), the processed fabric has been cleared directly for export from the premises of the job worker, by the appellant - assessee on payment of appropriate duty. Under the circumstances, we find that the view taken by the Commissioner to consider these goods as finished goods is totally erroneous and the demand of duty itself is without the sanction of law. We accordingly set - aside the order dated 28.09.2007 of the Commissioner. - Decided in favour of assessee. - Excise Appeal No. 259 of 2008 - Ex (DB) and Excise Appeal No. 3244 of 2007 - Ex (DB) - Final Order Nos. 51945-51946/2016 - Dated:- 3-5-2016 - Ms. Archana Wadhwa, Member (Judicial) and Mr. V. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s order-in-original took the view that grey fabrics are in the nature of finished product and not inputs and hence should not have been cleared without payment of duty for job work and hence the duty payable amounting to ₹ 81,71,751/- will need to be recovered from appellant-assessee. However, he took the view that these grey fabrics, after processing, have been cleared for export on payment of duty of ₹ 83,66,994/- paid out of the cenvat credit accumulated with the appellant-assessee. If the duty had been paid at the stage of grey fabrics, the appellant-assessee would have paid an amount of ₹ 81,71,751/- which would have been available as cenvat credit to the job worker who in turn would had to pay the duty on the proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n exported by the appellant-assessee are processed fabrics and the appropriate duty has been paid at that stage by them. Keeping this in view, we have no hesitation in categorising the grey fabrics as input/ intermediate products. Rule 4(5)(a) of the Cenvat Credit Rules permits such goods to be sent to the job worker for further processing. Under the permission granted by the Commissioner under Rule 4(6), the processed fabric has been cleared directly for export from the premises of the job worker, by the appellant - assessee on payment of appropriate duty. Under the circumstances, we find that the view taken by the Commissioner to consider these goods as finished goods is totally erroneous and the demand of duty itself is without the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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