2008 (8) TMI 370

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....s justified in rendering a finding that the benefit of deemed credit under the relevant Notification No. 6/2002-C.E. dated 1-3-2002 cannot be denied specially when the assessee concerned received bleached fabrics in its unit which are ineligible for benefit under the notification in terms of Explanation-3 thereof which provides that the notification shall not apply where processed fabrics itself are used as input for further processing? (b) Whether the Tribunal is justified in applying the Notification No. 6/2002-C.E., dated 1-3-2002 despite Explanation-3 which stipulates that provisions of the said notification shall not apply where processed fabrics itself is used as an input for further processing? (c) Whether the Tribunal is justified....

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....b worker for process of mercerizing and bleaching. The mercerizing and bleaching process were carried out without the aid of power, hence, processed fabrics was exempted from payment of duty, thus credit of duty deemed to have been paid could not be availed by the job worker....." This would indicate that the appellant had received the grey fabrics and the same were sent for job work, since this fact has not been challenged by the Revenue, before the Commissioner (Appeals), we have to go on the footing that what was received by the processor, who are the appellants herein, was grey fabrics which was sent out for bleaching and mercerizing. Therefore, prima facie, we cannot deny the benefits of deemed credit under the relevant notification a....

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.... may like to raise and thereafter determine the eligibility to the quantum of Modvat credit eligible and the refund due in these cases." 3. The revenue is aggrieved by the observation made by the Tribunal that the fact that the assessee had received grey fabrics and same were sent for job work was not challenged by revenue before Commissioner (Appeals), whereas in fact, according to the revenue, the said fact had been challenged. The revenue, therefore, preferred a Rectification of Mistake Application before the Tribunal which came to be rejected by the Tribunal. 4. The learned counsel for the appellant-revenue has submitted that the Tribunal has committed an error in remanding the matter after observing that the revenue had accepted the ....