2023 (12) TMI 168 - AT - Central Excise

Export of readymade garments - procuring the packing material from domestic market duty-free as per Rule 19(2) of Central Excise Rules, 2001 - Violation of Condition No. 8 of the Notification No.94/2004-Cus. dated 10.9.2004 - eligibility for the exemption Notification No.43/2001-CE(NT) dated 26.6.2001 or not - HELD THAT - In the present case, the appellant had complied with the procedures laid down under Notification No.43/2001-CE(NT) dated 26.6.2001 in procuring the packing materials which are being used in the manufacture of readymade garments and the finished goods are ultimately exported under the scheme. Also, in these circumstances, denying the benefit of Notification No.43/2001-CE(NT) dated 26.6.2001 in procuring the packing materials duty-free alleging violation of Condition 8 of the Notification No.94/2004-Cus. dated 10.9.2004 cannot be sustained. The impugned order is set aside - the appeal is allowed

Summary

Issues Involved:
1. Appeal against Order-in-Original No.29/2010 dated 30.12.2010 passed by the Commissioner of Central Excise, Bangalore-II.

Summary:
Issue 1: Eligibility for exemption under Notification No.43/2001-CE(NT) dated 26.6.2001 for procuring duty-free packing material.
- Appellants are engaged in the manufacture and export of excisable goods, availing benefits under various notifications.
- Allegations of violating Condition No. 8 of Notification No.94/2004-Cus. dated 10.9.2004 led to a show-cause notice for recovery of excise duty.
- Appellant's advocate argues compliance with procedures under Notification No.43/2001-CE(NT) and no violation of Condition No. 8 of Notification No.94/2004-Cus.
- Revenue contends that violation of Condition No. 8 of Notification No.94/2004-Cus. disqualifies appellants from availing benefits under Notification No.43/2001-CE(NT).
- Tribunal examines relevant conditions of both notifications and previous judgments to determine compliance.
- Tribunal finds appellants followed procedures under Notification No.43/2001-CE(NT) for procuring packing materials used in manufacturing and exporting goods.
- Denial of benefit under Notification No.43/2001-CE(NT) due to alleged violation of Condition No. 8 of Notification No.94/2004-Cus. is deemed unsustainable.
- Impugned order set aside, appeal allowed with consequential relief.

(Order dictated and pronounced in Open Court.)