TaxTMI 
TaxTMI 
2009 (5) TMI 302
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....g the final products i.e. processed cotton fabrics and man-made fabrics, the appellant was not eligible for deemed credit, accordingly, confirmed the demand of duty of Rs. 9,27,509/- along with interest and imposed equal penalty. The Commissioner (Appeals) upheld the order of the original authority. 5.1 Learned Company Secretary appearing for the appellant submits that the yarn used by the manufacturer of grey fabrics are duty paid; the duty paid yarn is very much contained in the processed fabrics; the deemed credit provided in respect of processed fabrics takes into account the duty paid at yarn stage and also the duty paid on dyes and chemicals, consumables and packing materials used in the final products. He submits that no one to one co-relation is envisaged in respect of inputs mentioned in Column 2 with corresponding finished products mentioned in Column 3. He also draws our attention to the explanation No. 3 under clause (6) which clarifies that notification shall not apply where processed fabrics itself is used as an input for further processing and thereby imply that the notification envisages extending deemed credit even when the grey fabrics is used for further process....
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....ation of the Government of India in the Ministry of Finance (Department of Revenue) No. 53/2001-Central Excise (N.T.), dated the 29th June, 2001, published in the Gazette of India vide number G.S.R. 497(E), dated the 29th June, 2001, except as respects things done or omitted to have been done before such supersession, the Central Government, hereby declares the following inputs (hereinafter referred to as the "declared inputs") and final products falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the said First Schedule), as specified in the Table below, namely :- TABLE S. No. Inputs Final products (1) (2) (3) (1) Goods falling within heading No. 51.05, 51.06, 51.07, 52.05, 52.06, 53.06, 53.07, 53.08, 54.02, 54.03, 54.04, 54.05, 55.01, 55.02. 55.03, 55.04, 55.05, 55.06, 55.07, 55.09, 55.10, 56.04, 56.05 or 56.06 of the said First Schedule. The following goods manufactured by a composite mill, namely :- (i) Processed fabrics falling under Chapters 52 (except sub-heading Nos. 5207.20, 5208.20 and 5209.10), 54 (except sub-heading Nos. 5406.10 and 5407.10), 55 (except sub-heading Nos. 5511.10, 55....
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....ducts of cotton (not containing any other textile material) declared herein; (b) 60 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 read with any notification for the time being in force, on the final products other than those specified in sub-clause (a), (ii) in case of a manufacturer other than a composite mill, shall be equivalent to the amount calculated at the rate of, - (a) 331/3 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 read with any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein; (b) 662/3 per cent. of the aggregate of the duty of excise leviable under the Central Excise Act, 1944 and the additional duty of excise leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 read with any notification for the time being in force....
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....fibres and eligible for the concession. The exemption for yarn as pointed out by the learned DR was admittedly in force during the period of currency of the Notification 29/96. 7.4 Further, the Tribunal in the case of M/s. Damini Printers (P) Ltd. dealing with the same Notification has held that credit is available in respect of processed fabrics processed by independent processors from grey fabrics. The relevant portion of the said decision is reproduced below :- '5. We have considered the submissions of both the sides. Rule 11 of the Cenvat Credit Rules, 2002 empowers the Central Government to declare the inputs on which the duty of excise or additional duty of Customs shall be deemed to have been paid at such rate as may be specified in the Notification and to allow Cenvat credit of such duty deemed to have been paid even if the declared inputs are not used directly by the manufacturer of final products declared in the Notification but are contained in the final products. In exercise of the powers conferred by said Rule 11, the Central Government has issued Notification No. 6/2002 (N.T.) specifying the inputs, and final products for the purpose of allowing the deemed Cenvat cr....