https://www.taxtmi.com/caselaws?id=3065 Grey fabrics procured by an independent processor qualified for deemed credit under Notification No. 7/2001-C.E., because the scheme under Rule 57AK of the Central Excise Rules, 1944 was intended to approximate duty incidence on declared inputs rather than require direct use of every declared input in the final product. The notification applied to processed fabrics manufactured by both composite mills and non-composite processors, and its structure supported treating yarn used for grey fabrics as part of the input chain for processed fabrics. A narrower reading would have made the deemed credit scheme redundant and unworkable, so the departmental challenge failed. en-us Tue, 23 Oct 2007 00:00:00 +0530 Wed, 16 Apr 2008 16:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3065 Grey fabrics procured by an independent processor qualified for deemed credit under Notification No. 7/2001-C.E., because the scheme under Rule 57AK of the Central Excise Rules, 1944 was intended to approximate duty incidence on declared inputs rather than require direct use of every declared input in the final product. The notification applied to processed fabrics manufactured by both composite mills and non-composite processors, and its structure supported treating yarn used for grey fabrics as part of the input chain for processed fabrics. A narrower reading would have made the deemed credit scheme redundant and unworkable, so the departmental challenge failed. Case-Laws Central Excise Tue, 23 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3065