9911796707
TMI Blog2009 (2) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue filed appeal under Section 35G of the Central Excise Act and the Hon'ble High Court vide order dated 25-9-07 set aside the order and remitted back to the Tribunal for taking fresh decision. 2. Heard both sides. 3.1 The relevant facts, in brief, are as follows : (a) Respondents procured duty paid POY took credit; they texturised the said POY; treating the said the texturised POY as semi-finished goods, the same were cleared to M/s. Mordi Textiles and Processors Ltd. for job work under Rule 57AC under cover of challans in terms of Notification No. 214/86 dated 25-3-86; M/s. Mordi Textiles & Processors Ltd. dyed the yarn and returned back to the respondent. These movements were under cover of challans in terms of Notification No. 214 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.3 The credit taken on the POY and nylon filament yarn has been utilized by the respondents for paying duty on the laminated fabrics. 3.4 The original authority in both the situations, held that the respondents were not eligible for deemed credit on the processed texturised fabrics received from the job workers who are working under compounded levy scheme on the ground that the movement to the job workers and back to the respondents was under Notification No. 214/86. 3.5 Commissioner (Appeals) held that the processed fabrics returned by the independent processors are deemed to be duty paid under compounded levy scheme and therefore, they are eligible for the deemed credit under Notification No. 30/2000. 4. The Hon'ble High Court remitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 214/86, the Tribunal, being the final authority so far as appreciation of evidence is concerned, should have considered all these documents on record in the form of challan, undertaking etc. for coming to the conclusion whether it is a case of taking double credit and on that basis, the Tribunal should have given its finding. The learned Advocate for the appellant has also relied on the decision of Customs, Excise and Service Tax Appellate Tribunal, Northern Bench-C, New Delhi in appeal no. E/925/2004-NB-C decided on 16-4-2004 and submitted that in that case, the Tribunal has held that duty liability has to be discharged by the assessee and not by the job worker and the assessee in the said case was the present respondent. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd receiving back the processed fabrics from job workers who are under compounded levy scheme. Permitting deemed credit under Notification No. 30/2000 amounts to giving them double benefit. 6.1 Learned Advocate for the respondents submits that processing of POY resulted in getting "texturised yarn" which is semi finished goods and processing dyed yarn resulted in getting grey fabrics which are semi-finished goods and the same were sent under the challans under 214/86. Such movements are permissible without forgoing the benefit of Cenvat credit taken on the POY. 6.2 As far as the respondents are concerned, the final products are laminated fabrics and the credit taken only on POY can be used for paying duty on the said final product as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs for processing. These movements have not been objected to by the Department. The second movement of grey fabrics for processing is more relevant to the present issue. 7.3 If the grey fabrics have been used for processing within the respondent's factory itself to get laminated fabrics, then they are eligible only for the Cenvat credit taken on POY. The question of paying duty on the processed fabrics and then paying duty on the laminated fabrics may not arise. 7.4 If the grey fabrics have been removed to the job workers for further processing and if the job workers were not under compounded levy scheme, they would have returned the processed fabrics without payment of duty and the question of taking any deemed credit under 30/2000 did n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
