TaxTMI 
TaxTMI 
2018 (8) TMI 84
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....dertaking, engaged in the manufacture of cotton yarn and synthetic yarn falling under Chapters 52 and 55 of the Schedule to the Central Excise Tariff Act, 1985. The appellant filed classification declaration claiming benefit of Notification No.5/98-CE dated 2nd June, 1998 and 5/99-CE dated 28th February, 1999, which wholly exempted goods falling under headings 5205.11, 5205.19, 5206.11 or 5206.12, from the payment of duty, subject to the condition that they were purchased by a registered Apex Handloom Cooperative Society, the National Handloom Development Corporation or a State Government Handloom Development Corporation and the payment for which is made by cheque drawn by such Cooperative or Corporation on its own bank account. This exempt....
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....y the revenue, the society to whom the yarn was tendered, were not found to be at the address given in the bills, proceedings were initiated against the appellant by way of issuance of show cause notice dated 14.07.2003 proposing to confirm demand of duty Rs. 56,87,662.66/- along with confirmation of interest and imposition of penalty in respect of the yarn cleared during the period from August, 1998 to January, 2000. 4. It is seen that the said show cause notice culminated into an order passed by the Commissioner vide which he confirmed the demand along with interest and penalty. The said order was appealed against before the Tribunal, who vide their Final Order No.101/2005-NB (c) dated 12.01.2005 observed that inasmuch as the certifica....
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.... The dispute in the present appeal revolves around benefit of Notification No.5/98-CE and 5/99-CE. In terms of said notifications yarn is to be supplied to various handloom societies on the basis of order placed by National Handloom Corporation, subject to fulfillment of condition numerated in the said notifications. Condition no.16 required production of certificate to that effect, which issue, raised by the revenue in the SCN, stands settled in favour of the appellant, vide the earlier order of the Tribunal. As such the only dispute remains, as to whether the yarn so supplied by the appellant was actually used by the societies or not. 7. As per the revenue's investigation such societies were either non-existence or non-utilized the yar....
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....the ultimate use of the yarn is beyond the scope of the notification. In any case we note that the appellants have strongly contended that enquiries at the societies address were made subsequently, thus leading to doubt about the same. As long as the appellants have fulfilled the conditions of notification and there being no further requirement in the said notification to verify the actual use of the yarn in question, we are not in agreement with the revenue's stand. It is also seen that the notification in question uses the expression "for use", which has to be interpreted as "intended to be used" and not actually used. As observed in the above referred decision of the Tribunal, wherever the notification intended to impose actual user cond....