2016 (12) TMI 1219

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ification no. 14/2002-CEW dated 1st March 2002. M/s Hindoostan Spinning and Weaving Mills Ltd cleared grey cotton fabrics (heading 5207.20) and grey man-made fabrics (heading 5512.20). Appeal no. E/3568/2004 challenges the order-in-original no. 10/M-I/2004 dated 31st August 2004 of Commissioner of Central Excise, Mumbai - I confirming demands of Rs. 83,46,105.40 for the period from 1st March 2002 to 30th June 2002 and Rs. 84,56,142/- for the period from July 2002 to July 2003 and Rs. 3,13,438/- for March 2003 besides interest and penalty of Rs. 10 lakhs. 2. Appeal no. E/1373/2005 has been filed by Revenue against impugned order-in-original no. 05/CEX/2004 dated 29th March 2004 dropping the demand of Rs. 69,69,512/- for the period from Marc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent upon the decision of the Hon'ble Supreme Court in Commissioner of Central Excise, Vadodara v. Dhiren Chemical Industries [2001 (139) ELT 3 (SC)], Central Board of Excise and Customs vide circular no. 667/58/2002-Cx dated 26th September, 2002 clarified that whenever an exemption is subject to condition that appropriate duty of excise has been paid on the inputs, the benefit is not to be extended if the inputs are exempted from excise duty or subject to 'nil' rate of excise duty. Subsequently vide circular no. 680/71/2002-CE dated 10th December 2002 the matter was further clarified that, in view of doubts raised in connection with the clearances by composite mills or manufacturer engaged in processing of fabrics along with weaving fabrics....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....id even in the absence of production of documents evidencing payment of duty. They also relied upon Condition No. 3 of this notification. Many Benches of the Customs, Excise and Service Tax Appellate Tribunal (for short 'CESTAT') has accepted the plea of the assessees holding that benefit of exemption notification would be admissible. Many other Benches of the Tribunal have taken a contrary view, thereby accepting the plea of the Revenue and holding that Condition No. 4 is not satisfied. That is the precise reason for filing two sets of appeals, preferred both by the Revenue as well as those assessees.' and the decision of the Hon'ble Supreme Court recorded is that: '15. A reading of the aforesaid Explanatory Note makes it clear that thos....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enue is in appeal have dropped demand on the basis of circular of 2002 issued by the Central Board of Excise and Customs to enable textile units to avail exemption in the special scheme of excise designed for that industry. The Hon'ble Supreme Court in disposing of the appeal in re Leisure Sports and Leisure Apparels also referred to the decision of the Larger Bench of the Tribunal on the very same issue: 17. Learned counsel for the assessees has brought to our notice another pertinent development. He submitted that because of conflicting views of the Tribunal, the matter was referred to a Larger Bench of the Tribunal which has answered the reference by detailed judgment rendered on 29-10-2014 [2014 (310) E.L.T. 515 (Tri. - LB)], accepting....