TMI Blog2001 (8) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... nt hereby specifies that the rate of excise duty on processed textile fabric falling under Heading Nos. 52.07, 52.08, 52.09, 54.06, 54.07, 55.11, 55.12, 55.13 and 55.14 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), manufactured or produced by an independent processor with the aid of a hot-air stenter shall be - (i) in the case of a processing factory whose average value of processed fabric is up to and including Rs. 30 per sq.m. 12.8 per cent, of the capacity of production in value terms per chamber per month, equivalent to Rs. 1.5 lacs per chamber per month; and (ii) in the case of a processing factory whose average value of processed fabric is exceeding Rs. 30 per sq.m. 12.8 per cent, of the capacity of productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Man Made Fabrics with the aid of Hot Air Stentering machine. They are covered under the definition of "Independent Processor". Each of the petitioner Company submitted an application before the Assistant Commissioner, Central Excise Division, Jodhpur, stating that as they have already taken MODVAT credit under Rule 57Q before introduction of impugned rule and the same is lying unutilised (in their RG 23C Part II Register), they may be permitted to utilise the said credit for payment of Central Excise Duty. The prayer has been refused on the ground that MODVAT credit lying in the balance unutilised stood lapsed on account of the impugned Notification dated 16-12-1998. It is contended by the petitioner assessees that on goods manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance Bill of 2001, Section 3A of the Central Excise Act, 1944 has been withdrawn and consequently, Notification No. 38/98, dated 10-12-1998 also stands non-existent. Thus, the say of the petitioner is that Clause 5 of the impugned Notification has become redundant. In the changed circumstances, it is submitted that in view of withdrawal of Section 3A of the Act of 1944 under which the said impugned notification was issued, Clause 5 of the impugned notification whereby independent processor of the processed textile fabric was not permitted to avail any credit of duty paid on input retrospectively, stands withdrawn as on the date and, therefore, the petitioners are now entitled and eligible to avail the credit of duty paid on input or capi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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