2002 (11) TMI 636

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.... Shri R.K. Pardeshi, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. - The question for consideration in this appeal is the eligibility to the benefit of the exemption contained in Notification 46/87 as amended by Notification 71/94 to the cotton yarn that the appellant manufactured and subjected to the processes specified in the application and ultimately used in the wea....

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....various conditions. The appellant therefore did not pay duty on the cotton yarn that it spun when it was ready for clearance. It subjected the cotton yarn to the processes of beaming, warping, etc., and thereafter used the cotton yarn in the manufacture of fabric, paid duty on the yarn when paying duty on fabrics in which it was contained. 2. Notice issued to the appellant proposed to deny....

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....ion requires to have already been paid means that duty which has been contracted to be paid. He relies upon the decision of the Tribunal in CCE v. Maruthi Foam (P) Ltd. - 1996 (85) E.L.T. 157 and other such decisions. He contends that harmonised interpretation of the provisions of Rule 49A and of the notification do not permit the conclusion that the Commissioner (Appeals) has arrived at. 4.&em....

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....ds which had been exempted from duty. This judgment came up for reconsideration by a Constitution Bench in CCE v. Dhiren Chemical Industries. In its judgment reported in 2002 (139) E.L.T. 3, the Supreme Court noted, "For the purposes of getting the benefit of the exemption under the notification, the goods must be made from raw material on which excise duty has, as a matter of fact, been paid, and....