2016 (12) TMI 572

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....it of the exemption notification. By the impugned order, the Commissioner (Appeals) allowed the appeals of the respondents. Hence, Revenue filed these appeals. 3. The Ld. AR appearing on behalf of the appellant reiterated the grounds of appeal. On the other hand, the Ld. Counsel appearing for the respondent submits that the issue is covered in favour of the respondents by various decisions as under:- a) Prashray Overseas Pvt. Ltd. Vs. Commr. Of Customs, Chennai [2008(232) E.L.T.63 (Tri.-Chennai)] b) Prashray Overseas Pvt. Ltd. Vs. Commr. Of Customs, Chennai [2009(235) E.L.T.300 (Tri.-Chennai)] c) Mapsa Tapes Pvt. Ltd. Vs. Commr. Of Cus. & C.Ex., Delhi-IV [2009(247) E.L.T. 188(Tri.-Del.)] d) SRF Ltd. Vs....

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....(the Tariff provides nil rate of duty for raw silk). On this basis, it is submitted that the question of a manufacturer of silk yarn availing Cenvat credit on input does not arise and, to this extent, the condition attached to the notification is irrelevant. It is further submitted that, for the silk fabric, the input is silk yarn, which is also claimed to be not chargeable to duty of excise by virtue of the above notification. Both parties agree that when silk yarn was imported during the material period no CVD was required to be paid in terms of Notification No.20/2006-Cus., dated 1-3-2003. Accordingly it is argued that there is no question of any manufacturer of silk fabric in India availing Cenvat credit on his input viz. silk yarn. In ....

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.... principle which was laid down in Thermax Private Limited and Hyderabad Industries Limited was summarised in the following manner :- "15. The ratio of the aforesaid judgment in Thermax Private Limited (supra) was relied upon by this Court in Hyderabad Industries Ltd. (supra) while interpreting Section 3(1) of the Tariff Act itself; albeit in somewhat different context. However, the manner in which the issue was dealt with lends support to the case of the assessee herein. In that case, the Court noted that Section 3(1) of the Tariff Act provides for levy of an additional duty. The duty is, in other words, in addition to the Customs duty leviable under Section 12 of the Customs Act read with Section 2 of the Tariff Act. The explanati....