9911796707
TMI Blog2023 (1) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... are engaged in the manufacture of excisable goods falling under chapter 52. During the period from 01.07.2000 to 31.03.2003, appellants had procured Bleached Cotton Fabrics falling under Chapter 52.07.and processed with dyes/chemicals/ consumable and manufactured final products viz. printed cotton fabrics falling under Chapter heading No. 5207.33. The Appellants sought permission from the Deputy Commissioner, Central Excise, Division-II, Rajkot to allow them to take the Deemed Credit in the Cenvat Register for the period from 01.04.2000 to 31.03.2003 under Notification No. 28/2000-CE(NT)dated 31.03.2000, No. 07/2001-CE(NT) dated 01.03.2001, No. 53/2001-CE (NT) dated 29.06.2001 and No. 6/2002-CE (NT) dated 01.03.2002 read with Rule 11 of Cenvat Credit Rules 2002. The Deputy Commissioner vide Order No. 1/TECH/2003 dated 13.11.2003 allowed deemed credit to the appellants. However, against the said order department filed appeal before the Commissioner (Appeals), who vide Order-In-appeal dated 18.02.2005 has allowed the appeals filed by the department and set aside the Order No. 1/TECH/2003 dated 13.11.2003. 2.1 Further, subsequent to the Order No. 1/TECH/2003 dated 13.11.2003, all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt exporters for ease of transportation and to save cost Cotton Grey Fabrics were first sent to the premises of the processors who had carried out bleaching and mercerizing. Therefore all the appellants are entitled for benefit of deemed credit as provided under the said Notification for the period under dispute. 3.1 He also submits that on plain reading of the Explanation 3 to the said Notification as well as other provisions of the Notification, such explanation excludes those processed fabrics used as an inputs for further processing from the benefit of the Notification which were processed in the same factory of the manufacturer and not in other factory. Plain reading of the explanation gives the meaning that benefit of deemed credit cannot be availed by the processor at each stage of process as benefit of Notification No. 67/95-CE dated 16.03.1995 as stood during the period under dispute excludes the Woven Fabrics /Fabrics of Cotton classifiable under Chapter 52 or Chapter 54 or Chapter 55. It means Woven Fabrics or Fabrics of Cotton viz., Grey, Bleached, Dyed or Printed or any other inputs when used for manufacture of other goods including the said goods for manufacture of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Notification such manufacturer cannot avail benefit of deemed credit under the said Notification. 3.4 He also submits that if the interpretation made by the revenue is accepted as correct that if processed fabric viz. Bleached & Mercerised Fabrics is used as an input for further processing viz. Dyeing and Printing then for carrying out any process viz., Bleaching & Mercerising if one may receive Woven Fabrics then also it has to be considered that processed fabrics itself is used as input for further processing, as weaving was also a process and from yarn of fiber woven fabrics was manufactured by process of weaving only. In that case no manufacturer may become eligible for benefit of deemed credit under the said Notification. Such interpretation is not permissible. 3.5 He argued that the Central Government while inserting explanation 3 purposefully not used the words "Process Fabrics itself further used as input for manufacture of final products" but used "for further processing" so as not to include processed fabrics manufactured by other manufacturer in other factory while not allowing benefit of the said Notification. If the intention was to prevent use of any processe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption under Notification No. 214/86-CE dated 25.03.1986 as amended was admissible to the description of the goods mentioned in column No.2 of the table manufactured in a factory as Job work and used in or in relation to the manufacture of final products specified in column No. 3 of the table but was not admissible to the goods " Woven Fabrics classifiable under Chapter 52/ Fabric of Cotton of Chapter 52". Therefore, in that case though goods were manufactured on job work basis in commercial parlance, duty of excise had to be paid by the person who had manufactured the goods. Since, both job workers viz. the processor of bleaching and mercerizing and appellants were manufacturer and benefit of Notification No. 214/86-CE dated 25.03.1986 was not admissible to the goods manufactured by them, they were manufacturer of final products. Therefore, if at one stage duty of excise was paid by availing benefit of Notification viz., deemed credit then definitely at next stage when such goods are supplied to other manufacturer scope of availment of deemed Credit is not available as per para 4 and no manufacturer leave the benefit of Cenvat Credit of duty paid at full rate and avail partial amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes the findings in the impugned orders. While drawing our attention to the findings of the learned Commissioner (Appeals), he submits that none of the appellants submitted any proof to prove that they have received grey fabrics as inputs. Therefore benefit of deemed credit is not admissible to the Appellants. 06. We have considered the submissions made by both sides and perused the records. The issue that falls for consideration in this case is whether the appellants are eligible to avail the benefit of deemedcredit. We find that the Tribunal while remanding the matters for de-novo had observed as under: "---------- This would indicate that the appellants had received gray fabrics and the same were sent for Job work, since this facts has not been challenged by the Revenue, before the Commissioner (Appeals) , we have to go on the footing that what was received by the processor, who are the appellants herein, was gray fabrics which was sent out for bleaching and mercerizing. Therefore, prima facie we cannot not deny the benefit of deemed credit under the relevant notification as granted by the Deputy Commissioner. We find that this fact whether grey fabrics were received or it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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