https://www.taxtmi.com/caselaws?id=446788 The CESTAT Ahmedabad ruled in favor of a 100% EOU appellant regarding exemption eligibility for Open End Yarn under Notifications 8/97-CE and 23/2003-CE. The revenue denied exemption claiming the yarn was manufactured from imported raw cotton. However, the tribunal found that Open End Yarn was manufactured from cotton waste generated during Ring Spun Yarn production, not directly from imported cotton. Since cotton waste was produced in India, it qualified as indigenous raw material under the notifications. The tribunal relied on SC precedent in Favourite Industries establishing that goods manufactured in EOU are considered manufactured in India. Additionally, the demand was time-barred as the department had full knowledge of appellant's activities without raising objections, negating suppression of facts. The impugned order was set aside and appeal allowed. en-us Mon, 04 Dec 2023 00:00:00 +0530 Mon, 11 Dec 2023 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446788 The CESTAT Ahmedabad ruled in favor of a 100% EOU appellant regarding exemption eligibility for Open End Yarn under Notifications 8/97-CE and 23/2003-CE. The revenue denied exemption claiming the yarn was manufactured from imported raw cotton. However, the tribunal found that Open End Yarn was manufactured from cotton waste generated during Ring Spun Yarn production, not directly from imported cotton. Since cotton waste was produced in India, it qualified as indigenous raw material under the notifications. The tribunal relied on SC precedent in Favourite Industries establishing that goods manufactured in EOU are considered manufactured in India. Additionally, the demand was time-barred as the department had full knowledge of appellant's activities without raising objections, negating suppression of facts. The impugned order was set aside and appeal allowed. Case-Laws Central Excise Mon, 04 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446788