TMI Blog2018 (6) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... of Tribunal would apply to the present case - In case of plastic granules manufactured by the Appellant from waste plastic, the same is exempted from duty and there is no condition in terms of serial No. 73 of the N/N. 6/2006 – CE dt. 01.03.2006 that the waste should be duty paid. Extended period of limitation - Held that:- The issue involved is of interpretation and therefore the demands made by invoking extended period of limitation are not sustainable. Appeal allowed - decided in favor of appellant. - Appeal No. E/1264 to 1269/2009 - A/86477-86482/2018 - Dated:- 23-5-2018 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Makarand Joshi, Asstt. Commr. (A.R.) for Appellant Shri D.S. Chavan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original authority for considering the issue on time bar as well as recalculated the duty and interest and eligibility of cenvat credit as ordered by Commissioner (Appeals). The adjudicating authority vide order dt. 23.07.2008 confirmed the demand but allowed cenvat credit of inputs subject to verification by jurisdictional authority. He also imposed penalty under section 11AC and penalty on Individual under Rule 26. The Appellant filed appeal before Commissioner (Appeals) for considering the issue of merits, deductions from assessable value and time bar. The Commissioner (Appeals) held that the lower authority has passed the impugned order without quantification of demand. That the lower authority should obtain the verification report fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditions. The said condition No. 34 is reproduced herein below :- If made from yarn, monofilament, tapes or strips, on which the appropriate duty of excise leviable under the First Schedule, the special duty of excise leviable under the Second Schedule or, as the case may be, the additional duty leviable under the Customs Tariff Act, 1975 has already been paid. In view of the above condition, Revenue is denying the benefit of the Notification for ropes on the ground that the intermediary products themselves are exempted under Serial Nos. 77 129 of the same Notification No. 6/2002. As the intermediary products are exempted, according to the Revenue in terms of Board s Circular No. 667/58/2002-CX dated 28-9-2002, the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumption Notification No. 22/96-C.E. dated 23-7-1996. Therefore it was argued that concessional rate of duty at 12% Adv. under Notification No. 14/2002 would not be available for processed oven textile fabrics for the simple reason that in terms of Board s Circular dated 26-9-2002 appropriate duty was not paid on the yarn. In that context, relying on Explanation VIII in the said Notification the Board gave the following clarifications in the Circular dated 10-12-2002 :- It is further clarified that the principal raw material in 5. the case of a composite mill would be textile fibres while in the came of a manufacturer engaged in processing of fabrics along with weaving of fabrics within the same factory, the principal raw material woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the raw material namely granules are duty paid is not in dispute. Hence the Commissioner s decision to extend the benefit of Notification No. 6/2002 for ropes in terms of Serial No. 142 is legal and proper. Hence we reject the Revenue s appeal. Applying the ratio of above order of tribunal we find that in the present case also there is no dispute that duty paid granules were used in manufacture and therefore the ratio of above judgment of Tribunal would apply to the present case. In case of plastic granules manufactured by the Appellant from waste plastic, the same is exempted from duty and there is no condition in terms of serial No. 73 of the Notification No. 6/2006 CE dt. 01.03.2006 that the waste should be duty paid. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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