9911796707
TMI Blog2003 (2) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... on payment of duty to outside weavers who after weaving the same, returned the fabrics to the assessee for further processing and the assessees cleared such fabrics after processing, on payment of appropriate duty and at the time of clearance of such processed fabrics they availed deemed credit as per Notification 29/96-C.E., dated 3-9-1996 which was available inter alia to processed fabrics manufactured from unprocessed fabrics not woven in the same composite mill [para 5(iii) of the notification]. As the yarn was being issued on payment of duty for weaving on job work basis the assessees could have cleared the same under Rule 57F(4) after reversing 10% of the value of the yarn and taking back the equal amount of credit on receipt of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site mill. This has been provided in lieu of duty paid on fibres yarn used in the manufacture of unprocessed fabrics because unprocessed fabrics is not subjected to any duty. Thus in case of processing of unprocessed fabrics received from an outside weaver deemed credit has been allowed because in such a case, outside weaver being manufacturer of unprocessed fabrics (exempted) is not entitled to avail any credit of duty paid on yarn or its inputs. Whereas in case of a composite mill, the manufacturer avails of credit of duty paid on yarn fibres and other inputs also and, therefore, no deemed credit is available to them on processed fabrics manufactured by them from their own manufactured unprocessed fabrics. However, there are cases where c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, who is eligible for credit of actual duty paid on various inputs as well as credit on deemed basis in respect of fabrics processed on job works basis. In view of the above, as in this case the fabrics has not been processed on job work basis but instead the assessee have got unprocessed fabrics woven on job work basis, they are not eligible for deemed credit in terms of the provisions of Notification No. 29/96-CE(NT), dated 3-9-1996. Held accordingly." Hence this appeal. 2. We have heard Shri Prakash Shah, learned Counsel and Shri Uma Shankar, learned SDR. 3. Notification 29/96-CE provides that duty of excise under the Central Excise Act, 1944, additional duty under Section 3 of the Customs Tariff Act, 1975, or the add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g therein to support the stand of the department in the show cause notice that the benefit of deemed credit under the notification is available only in respect of unprocessed fabrics received in a composite mill for processing on job work basis. Further para (4) of the notification which has been relied upon to deny the benefit is not attracted to the appellants as they are admittedly a composite mill. Proceeding further, the denial of deemed credit on the ground that the appellants took actual credit of duty paid on fibre which was contrary to para 4.5 of CBEC circular No. 243/77/96-CX., dated 3-9-1996, is contrary to the subsequent clarification in the form of Trade Notice No. 16/99 dated 16-3-1999 of the Mumbai Commissionerate. As per th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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