Custom, Excise & Service Tax Tribunal
M/S Cosmos Sanjay Weaving Mills (P) Ltd vs Cce, Jalandhar on 28 November, 2016
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SCO 147-148, SECTOR 17-C, CHANDIGARH-160017
DIVISION BENCH
COURT NO.1
Appeal No. E/218/2007
[Arising out of the Order-in-Appeal No. 259-60/CE/APL/JAL/2005 dated 24.08.2006 passed by the CCE (Appeals), Jalandhar]
Date of Hearing/Decision: 28.11.16
For Approval & signature:
Honble Mrs. Archana Wadhwa, Member (Judicial)
Honble Mr. Devender Singh, Member (Technical)
M/s Cosmos Sanjay Weaving Mills (P) Ltd. Appellant
Vs.
CCE, Jalandhar Respondent
Appearance Sh. Gautam Chugh, Advocate- for the appellant Sh. Atul Handa, AR- for the respondent CORAM: Honble Mrs. Archana Wadhwa, Member (Judicial) Honble Mr. Devender Singh, Member (Technical) Final Order No: 61691 / 2016 Per Archana Wadhwa:
1. After hearing both the sides duly represented by Sh. Gautam Chugh, Advocate and Sh. Atul Handa, AR, we find that the issue in the present case relates to availability of exemption Notification No. 14/2002-CE dated 01.03.2002, in relation to the processed man-made fabrics manufactured by the appellant. The said notification provides concessional rate of duty if the raw materials are duty paid. It is the revenue case that since the raw materials produced by the manufacturers are exempted in terms of the same notification, whether the benefit of the notification can be extended to the processed man-made fabrics i.e. appellants final products.
2. The appellant contention is that there were options for payment of duty on the raw materials by the raw materials manufacturers. One option was not to avail the credit and clear the goods without payment of duty and the second option was to avail the credit and clear the goods on payment of duty. There is explanation attached to the notification giving deemed fiction to the fact that all the yarn and fabrics available in the market would be deemed to be duty paid, even without production of any documents. As such, it is the contention of the Ld. Advocate that in the absence of the any contrary evidence showing that the raw materials manufactures availed the option of non payment of duty, the benefit of the notification cannot be denied to them in respect of processed man made fabrics.
3. We find that the issue is no more res-Integra and stands settled by the Larger Bench of this Tribunal in the case of Arvind Products Ltd. Vs. CCE & ST, Ahmedabad reported in 2014 (310) ELT 515 (Tri. LB). The said Larger Bench stands further approved by the Honble Supreme Court in the case of Sports & Leisure Apparel Ltd. reported in 2016 (338) ELT 3(SC). It stands held in the said decisions that in view of the legal fiction created by law, the inputs available in the market are deemed to be duty paid, thus resulting in concessional rate of duty for the final product in which the same are used.
4. In as much as the issue is settled by the above referred decisions, we are of the view that the impugned orders are required to be set aside and the appeal is required to be allowed. We order accordingly.
(Dictated and pronounced in the open court) Devender Singh Archana Wadhwa Member (Technical) Member (Judicial) rt 1 E/218/2007 Cosmos Sanjay Weaving Mills Ltd Vs. CCE, Jallandhar