TMI Blog2018 (6) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... viable read with any notification has been paid - In the present case it is an admitted fact that the supplier of the raw material has manufactured and cleared the grey fabrics to the appellant without payment of central excise duty availing SSI exemption under N/N. 8/2001-CE & 8/2002-CE. - The Circular No.667/58/2002-CXdated 26.09.2002 clarified that when an exemption is extended subject to the condition that the “appropriate duty has been paid” on the raw material, then such exemption shall not be available when raw material is not liable to excise duty or such duty is nil. The raw material / grey fabrics are clearly known as non duty paid as the same has been cleared by manufacturer after availing SSI exemption. The clearance document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14/2002-CE, the appropriate duty of excise leviable read with any notification time being in force has been paid on raw material. In the facts of the present case the goods were cleared under notification nos. 8/2001-CE 8/2002-CE, whereby the duty leviable is nil. Therefore the condition has been satisfied. He further submits that as per Explanation-II of the Notification No. 14/2002-CE, even if no documentary evidence is available, the raw material procured is treated as duty paid, therefore all the goods procured are treated as duty paid in terms of Explanation-II. He further submits that even if the grey fabrics is considered as exempted due to clearance under SSI exemption, but since grey fabrics were manufactured by supplier out of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C); ii. Arvind Products Ltd. V/s Commissioner of Central Excise and Service Tax, Ahmedabad reported in 2014 (310) E.L.T. 515 (Tri.-LB); iii. Commissioner V/s Arvind Products Ltd. reported in 2016 (340)E.L.T. A268 (SC). 4. On the other hand Shri S. J. Sahu Ld. Assistant Commissioner (AR) appearing on behalf of revenue retereats the finding of the impugned order. He further submits that in the taxing statute it must be interpreted in light of what is clearly expressed. In the facts of the present case, the raw material is recognized as non duty paid on the basis of documents. Therefore, there is contravention of notification No. 14/2002-CE. He placed reliance on the judgment of Hon ble Supreme Court in the case of SHABINA ABRAHAM V/S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff Act, 1985 (5 of 1986), specified in the corresponding entry in column (2) of the said Table, from so much of the aggregate of, (a) the duty of excise specified in the First Schedule to the said Central Excise Tariff Act; and (b) the duty of excise specified in the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act, (hereinafter referred to as the aggregate duty ) as is in excess of an amount calculated at the rate specified in the corresponding entry in column (4) of the said Table, subject to the relevant conditions specified below the said Table, and referred to in the corresponding entry in column (5) of the said Table : Provided that the aggregate duty of sixteen per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fabrics with the aid of power and who has no proprietary interest in any factory engaged in the spinning of yarn of cotton or weaving of cotton fabrics; and (ii) the value of the fabrics shall be equal to 40% of the value determined under section 4 of the Central Excise Act, 1944. Table 6. We observe from the condition no.5 of notification no 14/2002- CE that the excisable goods as specified in the notification are exempted if made from textile fabrics on which the appropriate duty of excise leviable read with any notification has been paid. In the present case it is an admitted fact that the supplier of the raw material has manufactured and cleared the grey fabrics to the appellant without payment of central excise dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable. If Explanation II is applied in such situations, then the condition no. 5 will be redundant. The case laws relied upon by the appellant are clearly distinguishable in the undisputed facts of the present case. In all those judgments, in none of the case the fact was that the raw material is procured from the manufacturer who cleared under exemption. Whereas in the facts of this case the raw material processed fabric was procured from manufacturer who cleared the goods under SSI exemption Notification No8/2001-CE and 8/2002-CE under the cover of invoices wherein NIL rate of duty was charged. 8. As regards allegation of suppression of facts by the appellant, we observe that (the Circular No. 125/36/95-CX dated 15.05.1995 cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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