TaxTMI 
TaxTMI 
TaxTMI 
2013 (9) TMI 206
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....ically regarding exemption to product falling under Sr. No. 12 of the said notification. It is his submission that as per the appellant, knitted or crocheted fabrics were eligible to benefit of Explanation II of the said notification, which reads as under : "Explanation II : For the purposes of the conditions specified below, textile yarns or fabrics shall be deemed to have been paid even without production of documents evidencing payment of duty thereon." 4. It is his submission that the lower authority are denying the benefit of Sr. No. 12 to their products on the ground that the supplier of knitted or crocheted fabrics of cotton has not paid any duty. It is his submission that the Tribunal, Principal Bench, had in the case of CCE, Ludh....
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.... bought from the market, they are to be considered as deemed to have been duty paid. It is his submission that in the case of Auro Textile v. CCE, Chandigarh - 2010 (253) E.L.T. 35 (Tri.-Del.), both these case-laws were not considered and not cited and even if mentioned, not considered by the Bench. The judgments of Tribunal starting from Auro Textile as cited hereinabove, are per incurian, as they did not consider binding judgments of the Tribunal. 5. Ld. SDR, on the other hand, submits that Morarjee Gokuldas Spg. & Wvg. Co. Ltd. has been upturned by Hon'ble Supreme Court in the case of CCE Mumbai-I v. Bombay Dyeing & Mfg. Co. Ltd. - 2007 (215) E.L.T. 3 (S.C.). It also distinguishes the judgment of co-ordinate Bench in the case of Simple....
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....ion, for the purpose of conditions of this Notification, textile yarn, textile fibres or fabric shall be deemed to have been duty paid even without production of the documents evidencing the payment of duty thereon. As per the Board's Circular No. 680/71/2002-CX., dated 10-12-2002, by virtue of Explanation-II, as amended by Explanation VII, under Notification No. 14/2002-C.E., - textile fibre, yarn and fabrics bought from the market are deemed to be duty paid and thus a manufacturer engaged in processing of fabrics alongwith weaving or knitting or crocheting fabric within the same factory from textile fibre or yarn bought from the market would attract excise duty of 12% ad valorem. In this case there is no dispute about the availability of ....
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....ket cannot be treated as unconditionally exempt from duty and hence non-duty paid on the basis of Hon'ble Supreme Court judgment in the case of CCE, Vadodara v. Dhiren Chemical Industries. In view of the above, we find no infirmity in the impugned order. Revenue's appeal is dismissed." (Emphasis supplied) 7. As against above reproduced portion of order, wherein this Bench was considering an identical situation which is before us in this appeal, the Tribunal's Bench in the case of Auro Textile which was followed in other cases as held as under : "48. It is true, that in Prem Industries case, wherein both of us were parties to the decision, related to the claim of benefit under the notification in question. But as rightly submit....
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.... deemed to have been duty paid as covered by the Explanation II to said Notification No. 14/2002. We are of the considered view that there is definitely inherent contradiction in the findings recorded by Tribunal in the case of Prem Industries and Auro Textile. We also find that the same issue was being considered by the Bench in the case of Simplex Mills Co. Ltd. and Morarjee Gokuldas Spg. & Wvg. Co. Ltd, wherein the benefit of Notification No. 14/2002 was extended to the assessee. We find that the issue regarding benefit of Notification No. 14/2002 as regards condition "on which duty has been paid" needs to be settled by Larger Bench. 9. We find as correctly pointed out by ld. Advocate for the appellant that the Hon'ble Supreme Court in ....