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of <h1>Interpretation of Central Excise Notification for Machinery Exemption</h1> <h3>INDUS FILA PRIVATE LTD. Versus COMMISSIONER OF C. EX., BANGALORE-III</h3> INDUS FILA PRIVATE LTD. Versus COMMISSIONER OF C. EX., BANGALORE-III - 2007 (209) E.L.T. 401 (Tri. - Bang.) Issues:1. Interpretation of Notification No. 30/2004-C.E. regarding Central Excise duty.2. Eligibility for exemption under the Notification based on machinery usage.3. Requirement of facility for manufacturing yarn and texturised yarn.4. Denial of exemption based on disused machines.5. Applicability of previous tribunal judgments in similar circumstances.Issue 1: Interpretation of Notification No. 30/2004-C.E.:The case involves a dispute over the interpretation of Notification No. 30/2004-C.E. related to Central Excise duty. The Commissioner's view was that the assessee was discharging appropriate duty until a specific date, even though certain machines were dysfunctional. The appellants opted for the benefit of the Notification, claiming they did not have the facility to manufacture yarn and were not engaged in texturising yarn.Issue 2: Eligibility for exemption based on machinery usage:The key contention was whether the appellants were eligible for the exemption under the Notification due to the non-usage of specific machines for manufacturing yarn. The Tribunal, in a stay order, found that the appellants did not have the facility to manufacture yarn or texturised yarn in their factory, supporting their claim for exemption.Issue 3: Requirement of facility for manufacturing yarn and texturised yarn:The appellants argued that they neither had the facility to manufacture yarn nor were involved in the process of texturising. They procured yarn from the market for dyeing purposes, presenting evidence to support their claim. The Notification specified conditions for exemption, including the absence of facilities for yarn manufacturing.Issue 4: Denial of exemption based on disused machines:The Commissioner denied the exemption based on the presence of disused machines in the factory premises, despite the machines not being in use. The Tribunal emphasized that as long as the appellants met the conditions of the Notification, the benefit could not be denied solely on the grounds of disused machinery.Issue 5: Applicability of previous tribunal judgments:The Counsel relied on previous tribunal judgments in similar cases to support the appellants' position. The judgments highlighted the importance of factual circumstances and the interpretation of relevant laws, leading to the conclusion that the impugned order was not legal and proper.In conclusion, the judgment analyzed various aspects of the Notification and the appellants' eligibility for exemption based on the usage of machinery and compliance with specified conditions. The Tribunal set aside the Commissioner's order, emphasizing that the denial of exemption solely due to disused machines was unjustified. The decision also referenced previous tribunal judgments to support the appellants' position, ultimately allowing the appeal with any consequential relief deemed necessary.
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