2016 (12) TMI 273

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....cise Tariff Act, 1985. The appellant was paying the concessional rate of duty on the said goods in terms of Notification No. 14/2002-CE dated 01.03.2002 and prescribed concessional rate of duty for the said goods subject to specified condition. As per the condition of said notification, the said goods are chargeable to concessional rate of duty and subject to condition that the said goods were made from Textile Fabrics on which appropriate duty of Excise (BED and AED (GSI)) has been paid. As the Textile Fabrics, out of which they said goods were manufactured were exempted from the payment of duty, therefore, it was presumed that no duty has been paid, therefore, the appellant is not entitled for benefit of Notification No. 14/2002-CE. Conse....

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....the relevant portion of Notification No. 15/2002, in particular Condition No. 4 contained therein as well as Explanation II thereof. As pointed out above, in the Union Budget 2002, a new excise duty scheme for textile sector was introduced, as per which manufacturers of the fabric or garments were given choice to opt under one of two schemes. Normal rate of duty is 12%. The two notifications provided exemption and concessional rates respectively. Those who wanted to avail the Modvat credit of the duty paid on the inputs or the capital goods, were supposed to pay excise duty at concessional rate, i.e., 75% of the normal rate of duty. Under the other scheme, full exemption from payment of duty was granted to those who did not wish to avail th....

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....f Cenvat credit, as the case may be. It is thus made clear that the benefit of the rate of duty should be allowed without insisting upon any documentary proof for payment of duty. However, if the manufacturer wants to avail Cenvat credit of duty paid on inputs or capital goods on actual basis, he will be required to produce duty paying documents as prescribed under the Cenvat credit rules." 15. A reading of the aforesaid Explanatory Note makes it clear that those who did not want to avail Modvat facility were allowed to clear the goods without payment of any excise duty. It is in this context that the authorities were asked not to insist upon any documentary proof for payment of duty and this was transported into the notifi....