2017 (1) TMI 1278

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.... 1985. * The appellant was availing the benefit of serial no. 12 of Notification No. 14/2002-CE and Serial No. 14 of Notification No. 15/2002 (the aforesaid notifications are collectively referred to as the  Said Notifications ) * The said notifications provide for nil rate of duty to the manufactures on certain conditions. One of the conditions for full exemption is that the said goods are exempt if manufactured out of knitted fabrics on which the appropriate duty of excise has been paid and further no cenvat credit of duty paid on inputs or capital gods has been taken. * During the relevant period, the department issued an SCN to the appellant alleging, inter alia, that the benefit of the said Notification is only available if ....

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....g exemption under Notification 14/2002-CE dated 01.03.2002 but the exemption under the said notification was subject to fulfilment of certain conditions. The respondent also manufactured the processed knitted fabrics on job work basis but did not pay any duty. The respondent claimed that they were entitled to clear the goods at nil rate of duty under serial no. 10 and 12 of Notification No. 14/2002 ibid but there plea was not accepted relying on the decision of Dhiren Chemical Industries reported in 2002 (139) ELT 3 (SC) and the show cause notice was issued. The matter was adjudicated, the demand of duty was confirmed by denying the benefit of exemption Notification NO. 14/2002-CE ibid. The said order was challenged before the Ld. Commissio....

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.... (68) ELT 9 (SC) and State of Bombay V. Pandurang Vinayak (AIR 53 SC (244) to drive home the point that a fiction created by a provision of law must be given its due play and it must be taken to its logical conclusion. Learned advocate also strongly argued that in view of the decision of Apex Court in the case of Western India Theatres Limited (AIR 1959 SC 586), Govindlal Chagganlal Patel (AIR 1976 SC (263) and Malik Zarid Khalid (1988 (1) SCC 145), each word used in a statute/Notification has some purpose as legislature does not waste any word. That the words  read with any notification for the time being in force  used in Condition-3 of Notification No. 14/2002, issued on 01.03.2002, was put in place to over come the interpretat....

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.... Ltd. reported in 2016 (338) ELT 3 (SC) wherein the Apex Court has observed as under:- 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 notification, in the form of Explanation II. It, therefore, becomes clear that when Explanation II states that the duty shall be deemed to have been paid even without production of documents evidencing payment of duty thereon, it was clearly meant that no duty was required to be paid by the manufactures of knitted garments. Su....