2015 (2) TMI 653

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....certain quantity of polyester staple fibre and viscose staple fibre free of duty under Rule 19 (2) of the Central Excise Rules 2002 read with Notification No. 43/2001-CE NT dated 21st June, 2001 for use in the manufacture of the yarn for export. The appellant due to some reasons, could not use full quantity procured duty free for the intended purpose that is for manufacture of the spun yarn for export and certain quantity of the spun yarn manufactured out of the duty free PSF & VSF was cleared to domestic buyers on payment of duty. The appellant in respect of PSF & BSF procured duty free which had been used for manufacture of spun yarn cleared to domestic buyers on payment of duty, paid central excise duty amounting to Rs. 19,88,054/- but t....

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....n for export and point of dispute is as to whether duty on this PSF & VSF could be paid through cenvat credit, That this issue stands decided in the appellants favour by the Tribunal judgment in the case of Ginger Clothing Pvt. Ltd. Vs. CCE, Thane reported in 2014 (299) ELT 469 (Tri.-Mumbai) wherein the Tribunal in similar circumstances held that the duty on the material procured free of duty for export production under Rule 19(2) of Central Excise Rules, 2002 could be paid through cenvat credit, that as regards the second point of dispute as to whether cenvat credit of duty paid on the PSF and VSF is admissible, this issue also stands decided in the appellants favour by the Tribunal judgment in the case of Shree Karpagambal Mills Ltd. Vs.....