TaxTMI 
TaxTMI 
2011 (3) TMI 134
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.... 283 and 290 of 2010 as all the appeals involve a common question. 2. CEA Nos.228 of 2010 has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 (for short, "the Act") against the order of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi dated 12.11.2009, Annexure A-2, proposing to raise following substantial question of law:- "Whether Tribunal is justified in setting aside the penalties on the ground of interpretation when the issue already stands elucidated by the Constitution Bench of the Hon'ble Supreme Court of India?" 3. The assessee is registered with the Central Excise Department for manufacture of knitted fabrics. It availed concessional rate of duty during the per....
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....ee had no justification for obtaining concessional rate of duty for the period from 1.9.2002 to 31.3.2003 and thus, the view taken by the Tribunal that there was dispute of interpretation was not legally correct, the dispute having already been settled by the Hon'ble Supreme Court during the period in question. 6. We are unable to accept the submission. 7. The Tribunal has noticed the contention of the assessee that even though question of principle was settled in Dhiren Chemical Industries, applicability of the said judgment to the impugned notification still remained a moot point. Earlier view that inputs exempted from duty were treated as duty paid inputs as per the judgment of the Hon'ble Supreme Court in CCE, Patna v. Usha Mar....
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....was delivered on 12.12.2001, the notification in question came to be issued in March 2002. Being so, the Legislature and the Government were fully aware of the said decision of the Apex Court when the said notification was issued and precisely for the same reason, care was taken to clarify in the condition itself that the expression "appropriate duty" would also include the eventuality wherein the yarn and fabric is not subjected to the actual payment of the duty. It is also brought to the notice that since 1980, it has been the consistent stand of the Government that whenever the inputs are exempted from duty liability under a notification, they were always to be treated as duty paid inputs and that is evident from series of circulars issu....