TaxTMI 
TaxTMI 
2018 (6) TMI 915
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.... 2. Shri Prasad Paranjape Ld. Counsel appearing on behalf of appellant submits that the processed fabrics manufactured by the appellant is out of raw material i.e gray fabrics procured from manufacturer who cleared the goods by availing SSI exemption under Notification nos. 8/2001-CE & 8/2002-CE under nil rate of duty. As per the condition no. 5 of notification no.14/2002-CE, the appropriate duty of excise leviable read with any notification time being in force has been paid on raw material. In the facts of the present case the goods were cleared under notification nos. 8/2001-CE & 8/2002-CE, whereby the duty leviable is nil. Therefore the condition has been satisfied. He further submits that as per Explanation-II of the Notification No. 14....
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....bility of exemption at the relevant period of time and the appellant cannot be faulted with suppression or willful mis-statement to invoke extended period of limitation. In support of his above submissions, he placed reliance on following judgements: i. Sports and Leisure Apparel Ltd. V/s Commissioner of Central Excise, Noida reported in 2016 (338) E.L.T. 3 (SC); ii. Arvind Products Ltd. V/s Commissioner of Central Excise and Service Tax, Ahmedabad reported in 2014 (310) E.L.T. 515 (Tri.-LB); iii. Commissioner V/s Arvind Products Ltd. reported in 2016 (340)E.L.T. A268 (SC). 4. On the other hand Shri S. J. Sahu Ld. Assistant Commissioner (AR) appearing on behalf of revenue retereats the finding of the impugned order. He further submits t....
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....pects things done or omitted to be done before such supersession, the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods of the description specified in column (3) of the Table below and falling within the Chapter, heading No. or sub-heading No. of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), specified in the corresponding entry in column (2) of the said Table, from so much of the aggregate of, - (a) the duty of excise specified in the First Schedule to the said Central Excise Tariff Act; and (b) the duty of excise specified in the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act, (hereinafter referred to....
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....textile yarns or fabrics shall be deemed to have been duty paid even without production of documents evidencing payment of duty thereon. Explanation III. - For the purposes of the exemption under S.No. 5 of the Table, - (i) the expression "independent processor" means a manufacturer who is engaged exclusively in the processing of fabrics with the aid of power and who has no proprietary interest in any factory engaged in the spinning of yarn of cotton or weaving of cotton fabrics; and (ii) the value of the fabrics shall be equal to 40% of the value determined under section 4 of the Central Excise Act, 1944. Table 6. We observe from the condition no.5 of notification no 14/2002- CE that the excisable goods as specified in the notificatio....
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.... In the present case, the facts are different. The raw material / grey fabrics are clearly known as non duty paid as the same has been cleared by manufacturer after availing SSI exemption. The clearance documents clearly show that no duty has been paid on grey fabrics. In such situation the Explanation -II is not applicable. If Explanation -II is applied in such situations, then the condition no. 5 will be redundant. The case laws relied upon by the appellant are clearly distinguishable in the undisputed facts of the present case. In all those judgments, in none of the case the fact was that the raw material is procured from the manufacturer who cleared under exemption. Whereas in the facts of this case the raw material processed fabric was....