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TMI Blog2017 (3) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... on for manufacture of cotton denim fabrics without payment of duty by availing benefit of exemption Notification No. 22/96-CE dated 23.07.1996. The respondent were also procuring cotton yarn from outside on payment of applicable duties for the manufacture of cotton denim fabrics. During the period 01.03.2002 to 28.02.2003, the respondent cleared denim fabrics for home consumption on payment of cenvat credit @ 8% Adv + AED (GSI) @ 4% Adv by availing exemption Notification No. 14/2002-CE dated 01.03.2002. 3. As per the exemption Notification No. 14/2002-CE dated 01.03.2002, denim fabrics, whether or not processed, falling under Chapter sub-heading No. 5207.10 & 5208.10 of the Central Excise Tariff (mentioned at S.No. 3 of the Table thereunde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said order, the Revenue is before us. 5. Heard the parties and considered the submissions. 6. Considering the fact that the similar issue came up before this Tribunal in the case of M/s Jarnail Government House in Appeal No. E/3759/2006. The said issue was decided by this Tribunal vide Final Order No. 61481/2016 dated 28.09.2016, wherein this Tribunal observed as under: 4. We have seen that in this case benefit of exemption Notification have been denied on the premises that as per Notification No. 14/2002-CE, the exemption is available on production of documents evidencing payment of duty thereon, but as per explanation to the exemption notifications creates a legal fiction, specifying that for the purpose of conditions of this notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at + 4% AED (ST)) has been prescribed. That is, if the manufacturer wants to avail cenvat credit of the duty paid on inputs (either on deemed basis or actual basis) and capital goods (on actual basis), he will be required to pay duty at 12% adv. (8% Cenvat + 4% AED (ST)). If he does not want to avail any credit on inputs and capital goods, he is not required to pay any duty. The rates of deemed credit for processed knitted fabrics of cotton are the same as applicable to woven fabrics. Notification Nos. 14/2002-CE and 15/2002-CE, both dated 01.03.2002 prescribes effective rates of duty of nil or 12% adv. In the case of textile fabrics subject to the condition that the goods should have been made from textile yarns or fabrics on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. Such an intention is clearly reflected in the Government s own Budgetary Notes extracted above. We, thus, hold that Explanation II to the said exemption Notification No. 14/2002 and 15/2002 create legal fiction and that was the precise purpose for which the explanation was added. It is trite law that a fiction created by a provision of law is to be given its due play and it must be taken to its logical conclusion (Union of India V. Jalyan Udyog (1994) 1 SCC 318). 6. As the issue is attained finality by the decision of the Hon'ble Apex Court cited hear in above. Therefore, we hold that the appellant is not required to produce the evidence payment of duty on Textile Fabrication and benefit of Notification No. 14/2002-CE is available to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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